Markets are bleeding. ETH fell from $ 500 to $ 300 in a matter of days, and people were screaming that the DeFi bubble had already burst, screaming about their favorite coin “[insert food name]”, which dropped in value following a Twitter account. Since the month of the carpet has attracted 38 thousand Ethereum investors.

Yes, it’s only a week of coding, but has anyone else noticed that Tron (TRX) is pumping in the middle of it all?

It may be just a coincidence, but the last time it happened so quickly, the entire cryptocurrency market was mired in a long cold crypto winter.

Bitcoin has depreciated 21% of its dollar value after falling from $ 12,500 to less than $ 10,000 in just two weeks, bringing the popular “BART” pattern to our faces.

But when the leading digital currency by market value makes such a dramatic move, it (basically) pulls all other cryptocurrencies with it.

This particular season in Bitcoin history peaked at around $ 12,500 and many are now wondering where the bottom is. So, in this week’s analysis, I will look at three possible scenarios for determining a bottom.

Most seasoned bitcoin traders know that there is a gap in the CME, for those of you who have not yet fallen into this spell, let me explain. Bitcoin is an asset that can be traded around the clock, seven days a week. However, the CME is only open 23 hours a day, starting Sunday evening at 5:00 pm CST and ending at 4:00 pm CET on Friday afternoon.

This means that there are windows where holes can appear and this usually happens on weekends when the market closes on Friday and reopens on Sunday evening. However, traders can trade the asset 24/7 using what CME indicates on its website as follows:

“ Rule 526 and EFRP (Related Exchange of Positions) under Rule 538 can be negotiated / enforced 24/7 and must be cleared during the relevant clearing session.

This means that orders can still be placed when the market is closed, as for the cards, which means orders can be filled and this is where the gap occurs.

The last break occurred on 13 August. It was Thursday, so when the Chicago Mercantile Exchange closed for the hour when Bitcoin was trading at $ 11,715, it reopened at $ 11,765. It was this $ 50 move that created the gap. So when Bitcoin surged to $ 12,635 on the CME chart, orders may have resumed from $ 11,715.

When the price crosses the price gap on August 19, 2020, the gap is considered “complete” and it can only be assumed that the orders remaining at that level were subsequently filled.

However, the bitcoin price continued to fall and we printed a new inside low of $ 9,905 on the CME chart, which is now only $ 240, to fill the gap again on July 24th.

Here it is completely blurred. The size of the gap as of July 24 ranges from $ 9665 to $ 9.925, which leaves the question of whether the gap needs to be closed yet. Or if the gap is partially closed.

When the wick entered the gap, it never reached $ 9,965, so the gap was not completely closed. Does this mean there are still pending orders up to $ 9665?

We do not know, and this leaves some speculators who believe that the gap has been closed, and another camp who believes that it has not yet been closed.

Beyond the CME magic, tech traders are already looking for $ 7K support sites. Keith’s official analyst (* ahem * by the way, I) tweeted on September 4:

“Losing $ 0.618 every week at $ 7,033, he made my dream of owning nothing come true.”

Immediately after these same levels, he was echoed by the well-known trader Scottmelker, who said:

Keep in mind that a return to the $ 7,000 low will still be considered “healthy”, reaching 61.8% of the gold pocket allocation before heading to new heights. In fact, this will be considered “normal” after moving from the March low. It will scare everyone. “

Source: CoinTelegraph

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