BTC price eyes $58K CME gap as analysis crosses 2 Bitcoin death flags
Bitcoin (BTC) circled $56,000 at the August 7 Wall Street open amid fears of a lack of support.
Bitcoin battles death crosses, thin liquid
Data from Cointelegraph Markets Pro and TradingView showed BTC price rebounding, BTC/USD flat with daily open.
With prices hitting six-month lows of around $7,000 on August 5, bitcoin continues to worry market watchers amid an atmosphere of uncertainty.
Analyzing the order book conditions of the exchanges, the material indicators of trading inputs concluded that the price could go either way depending on the current buying and selling.
“Between this and the filling of the CME gap, the size of BTC's liquid account is important, but not insurmountable,” he wrote in X's latest.
“The concern is that there are no large buying walls in the active trading range to form the basis for a strong upward move. Let's see if TradFi opens and the CME gap is open for trading.
The post cited a “gap” in CME Group's Bitcoin futures market, which could create a price magnet between $57,845 and $58,845.
Next, Material Indicators founder Keith Allan warned about two death crosses involving different moving averages – but said the downside could still be reduced.
“Trend Precognition and MACD both indicate a quick reversal on Bitcoin's daily chart. With the death cross between the 21-day and 100-day MAs, the bullishness of those signals has slowed somewhat. The 50-day and 200-day seem to be on the same track,” said the platform's proprietary trading. Referring to the indicators, he elaborated on Ex.
“It is important to note that death crosses are late indicators. A quick recovery can solve them, and if the BTC bulls can fill the CME gap today and continue up, it will be a sign of strength. Failure to fill the gap or decline at the top of the gap will be a concern for the bulls.
Bitcoin traders are cautiously optimistic
Macroeconomic conditions were also volatile on the day, with traders clearly in a “wait and see” mode.
RELATED: Bitcoin Needs $59.1K Weekly Amid Uncertainty Over BTC Price
In a recent announcement to Telegram channel subscribers, trading firm QCP Capital told crypto traders to monitor macro communications.
“After the initial shock has passed, we will see selling pressure in the coming days as strategic funds continue to be exposed to higher volatility,” he warned of stock indices.
We recommend keeping a close eye on Nasdaq, Nikkei and USDJPY as cross-asset correlations will be high in the near term.
QCP reiterated its earlier view on long-term profitability, arguing that crypto should now be fit for the long term.
“With the extreme level of market volatility over, we prefer to establish long-term bullish positions in anticipation of a cutting cycle. We prefer a trading horizon of 3-6mm to avoid getting cut off due to high volatility.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
