Following Bitcoin’s explosive movement into the five-figure price region, investors and Bitcoin bulls have been ecstatically celebrating, and the market sentiment has altered significantly for the better.
Despite this, it is important to note that it may currently be too early to get too excited, as there may be more significant dips in the week ahead before Bitcoin and the markets continue their upwards surge.
Bitcoin Surges Towards $11k, But Creates CME Futures Gaps Along the Way
At the time of writing, Bitcoin is trading down marginally at its current price of $10,760.
Over the past week, BTC has been on a massive swing upwards, surging from lows of $8,870 to highs of $11,150. This upswing marks a significant extension of the upwards momentum that Bitcoin first incurred in early-April when it began its ascent from below $4,000.
Although the series of upwards swings that have occurred over the past several months have certainly been positive, the upwards momentum has created several gaps in the CME Futures chart that will likely have to be filled in the week ahead.
Chonis Trading, a popular cryptocurrency analyst on Twitter, spoke about these recently formed CME Futures gaps in a recent tweet, noting that these gaps are typically filled in the week after they are formed during uptrends.
“$BTC (CME Furtures) – Current Open GAP on the Weekly chart down to $8500…There are multiple examples of past weekly gaps taking up to 5 weeks to fill. Gaps on this uptrend have been filled during the price action of the following week… Market reopens in about 6HRs,” he explained in a recent tweet.
Analyst: BTC May Incur a Big Pullback Before Upwards Movement Begins
Although this upwards momentum certainly appears to be showing few signs of slowing down anytime soon, one analyst is quick to note that bear markets rarely reverse straight into bull markets, which may mean another drop is imminent before Bitcoin continues climbing higher.
“$BTC: – 50% retrace of ATH to 3K bottom – At weekly supply resistance. R2: $13500 R1: $11400 S1: $9200 S2: $6500. Some incredible PA. In general, it’s rare to see a bear market reverse in to straight bull market, without a retrace. The FOMO is huge. When flashcrash?” Bitcoin Jack, a popular crypto analyst, noted in a recent tweet.
As the weekend wraps up and the new week begins it is highly likely that Bitcoin will incur some volatility, and the current gaps in the CME Futures chart may signal that a pullback will ensure before the cryptocurrency continues its journey back to its previously established all-time-highs.
Featured image from Shutterstock.
