But before this happens, one ultra-bearish trader believes there’s a chance the cryptocurrency could retest its bear market bottom, and potentially fill all remaining gaps left on CME BTC Futures price charts. Is this trader in disbelief, or is there validity to their theory?
Bearish On Bitcoin: One Crypto Traders Expects A Full Retrace
The cryptocurrency could be on the cusp of a new bull market so investors are rightfully moving BTC off exchanges and into cold storage for safekeeping. The total BTC on exchanges is at the lowest point since the last bull run.
It is hard to imagine anything at this point standing in the way of a repeat of 2017, if not something far more spectacular. Projections from even experts and some of the world’s best investors all expect prices of $100,000 or more someday.
And while most investors and analysts believe that Bitcoin is well on its way and that the “train has left the station,” one bearish trader expects all remaining CME Futures gaps to be filled, before the cryptocurrency moves on to a new all-time high.
The latter was caused by the world learning of the pandemic and falling into a panic. The former was due to natural market dynamics. What could cause such a dramatic dive this time around? And why are CME Futures gaps such a big deal?
In speculative assets, when official trading desks like the Chicago Merchantile Exchange close up on Fridays, the chart stops tracking price action, while the rest of the world keeps on trading Bitcoin.
When Monday through Friday trading sessions resume, any extreme weekend movements leave a gap behind that more often than not, gets filled. Data shows that the gaps usually get filled within the first week after they appear.
In rare cases, like the gap left behind around Bitcoin’s bottom, it has taken almost two years and the gap still is there, acting as nothing more than a frightening possibility that unbiased traders like the one mentioned cannot rule out.
Featured image from Deposit Photos, Charts from TradingView.com