- Bitcoin formed a gap on July 24 that hasn’t closed yet.
- Historically, CME gaps have always been good indicators of future price action.
The bitcoin market is open 24/7, which means it never closes and cannot form gaps, however, CME, a derivatives marketplace, does. CME Bitcoin futures created its most recent gap at $9,665 on July 24. This happens when the market closes and then opens at a different price, leaving a gap behind.
Looking at the CME Bitcoin chart, we can see that, historically, every single gap has actually closed. Some gaps only take a few days to fill, while others can take up to three months, like the one in June 2019. Bitcoin touched $9,890, which is still notably higher than $9,665, and the gap is currently not considered filled.
BTC/USD daily chart
Bitcoin is exceptionally close to filling the gap, but it seems bulls are already buying the dip and not allowing the pioneer digital asset to fall below $10,000. On Binance, Bitcoin touched $9,825, again, reasonably close to the $9,665 gap. There are two main pathways that BTC could take.
Bitcoin bulls could continue buying the dip and allow the gap to fill at the same time. A flash crash to $9,665 right into a bounce is a realistic scenario considering how healthy the $10,000 level is and that the RSI would be oversold if Bitcoin were to fall below $9,700. Additionally, this level coincides with the 200-MA as well.
We could also see Bitcoin losing both levels, at $10,000 and $9,665 and form a new low as below this last support level, Bitcoin doesn’t have other support points until $9,047.
BTC/USD 4-hour chart
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BTC has established a slight uptrend on the 4-hour chart after holding the low of $9,825 and forming a higher low at $9,875 followed by a higher high at $10,438 compared to $10,347. Bulls have defended the $9,875 low establishing a new higher low at $9,920 and are now waiting for the leg up above $10,438 ideally.
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