Bitcoin surpasses “pre-crash levels” on March 12th trading 130% higher than the lows recorded in March. The CME gap also soared to $9,100 leading to bullish whispers across the market. One analyst however believes the top crypto is yet to signal a move past $9,000 with the indicators still weak.
Bitcoin currently trades slightly above $8,300 after a magnificent 5% upwards run in the opening hours of the U.S. market reaching a high of $8,424 on Wednesday, April 29, 2020. The push above $8,400 resistance levels set the CME Gap on a widening run to $9,100, setting the Bitcoin Perma bulls on a hopeful run.
Despite previous CME gaps providing a clear trend in what the spot price of BTC will be in the near future, crypto analyst and trader, Josh Rager, believes the digital asset is yet to form solid fundamentals to merit a push above $9,000. Since hitting the resistance past $8,400, Rager believes bulls will need to retest this level and breach $8,600 in order to close in the CME gap.
CME Gap quite large, bullish for Bitcoin?
The CME Gap occurs when the price of Bitcoin makes a large move in either direction once the Intercontinental Exchange (ICE) Bitcoin Futures market closes for the day. As mentioned above, BTC’s price currently stands at $8,300 with the CME Futures gap at $9,100.
The $BTC CME Futures Gap is quite large – $8270 up to $9120 on the daily chart
Currently exploring the gap, but again, no reason price needs to push all the way up to over $9k
With resistance in the $8400 to $8600 area – expect a pullback there pic.twitter.com/1MnBAC5cvp
— Josh Rager 📈 (@Josh_Rager) April 29, 2020
BTCs price mostly does gravitate to close the gap but only when the market is supported by volume, momentum, technical indicators, and the fundamental on-chain analytics. According to Josh, BTC does not show any positive factors to push it towards $9,000 yet. He wrote on Twitter,
“Currently exploring the gap, but again, no reason price needs to push all the way up to over $9k.”
On the contrary, Josh actually thinks, BTC will pullback in the $8,400 to $8,600 level given the low volumes recorded during this short bullish run.
Bitcoin set to test sub-$8000 levels?
The growth past $8,000 will be a welcome sight for investors in BTC but the short term indicators signal a possible reversal as the relative strength index (RSI) levels on every chart below the daily are at overbought levels. On the hourly charts, the market is highly overbought with the RSI oscillating around 90, which signals possible exhaustion in the buying pressure.
If the price rejects the $8,600 levels, then the market may play out bearish causing a retest of $7,000 levels.