Bitcoin has pumped hard on 25 October and gains 42% in a single day. That was the third biggest gains in Bitcoin history since 2009. After the comment from China’s President Xi Jinping, Bitcoin and Chinese coins pumped very hard. The rage is now over and looks like Bitcoin is stable in a range for some time. In this post, we will discuss the Bitcoin price prediction and CME Bitcoin futures gap.
At the press time, Bitcoin is trading at $9460. The daily price started at $9200 and make a daily high of $9650.
Top 20 cryptocurrencies show good gains in the past 2 days. Chinese projects Tron (TRX), Neo (NEO), Ontology (ONT) etc. shows massive returns after the comment from China’s President Xi Jinping.
Bitcoin Price Prediction
Bitcoin is now trading at $9460 (at the press time). The rage is now over and the price is stabling in a range. The instant support of quick sell-off is now $8800-$9000. The daily 50 MA and 200 MA (Moving Averages) works as quick support for panic selling situation. The daily 50 Ma is now at $8835 and the daily 200 MA is now at $8986.
The daily 100 MA is acting as a resistance. The 100 MA is now at $9627 and acting as a good resistance. If bulls are able to break above the 100 MA then they are aiming for $10,000 mark. The major psychological resistance is $10,000.
CME Gap Around $9000
Chicago Mercantile Exchange’s (CME) has launched the Bitcoin futures market in 2017. The CME BTC futures contracts are settled in cash. Mostly all the cryptocurrency exchanges run 24*7 but CME futures contracts only trade 5 days a week from Monday to Friday.
If Bitcoin price makes a sudden movement either side on Saturday and Sunday that will leave a gap on the CME futures charts. This is well known as Bitcoin will fill the gaps by price movements.
The Chicago Mercantile Exchange’s (CME) BTC futures market started with a gap on Monday. The BTC futures market on Friday was closed on $8715 and opened at $9700 on Monday. The gap is at $8800-$9200 and needs to be filled as happened with the previous CME market gaps.
The previous CME BTC futures gap is filled by the major drop on 24 September. This is interesting that the CME charts have moving averages on different levels. The daily 50 MA on CME chart is at $9234 and the 200 daily MA is at $7496. That is a huge difference from the other charts provided by cryptocurrency exchanges.
Bitcoin has registered the third biggest gains since 2009. The price pumped from $7300 to $10,400, that is around 42% growth in a few hours. The good thing is that the price is not dumped drastically and now trading in a tight range. The range shows that traders are accumulating Bitcoin at the current levels.
The good news is that Bitcoin is now trading above the daily 50 and 200 MA. The daily 50 and 200 MA acts as a support and Bitcoin will test the 50 and 200 MA before pumping again.
The CME futures gap is also not far below the current market price and also close to the daily 50 MA point. If bitcoin is going to fill the CME gap, most of the traders remain bullish as it trades above the 200 MA.
The Chinese president comment influence is still in the market that will push the price to even more higher. The searches about Bitcoin and Blockchain increase dramatically on the Chinese search engine Wechat.
When you look at the daily candles, Bitcoin has registered 42% gains on 25 October and touched the price of $10,500. The price is rejected from the $10,500 levels and the candle close at $9200 forming a large wick on the daily candle.
Wick candles are known as bearish market sentiments, however, that not make a sense because the market has already moved more than 40% and needs little correction.
As most of the CME futures gaps are filled in the past, this newly created gap is most likely to be filled. To fill this gap Bitcoin needs to trade below $9000 point, that will turn the market sentiments and will lead to heavy sell-off.
Also Read: How to Earn Bitcoin?
Note: The above are the views of the author and not financial advice. Bitcoinik is not responsible for any profit and loss. You should do research at your end before making any financial decision.