May Bitcoin Futures Fill In The GAP

No major reasons for the sudden plunge in BTC are being cited at the moment. For now, it was just another case of “Bitcoin being Bitcoin.”

bitcoin

During the U.S. overnight, May Bitcoin futures (BTC) posted a massive selloff before bouncing from weekly lows. The price action resembled a flash crash, with May BTC falling from $7630 to $6320 in a little over 15 minutes. In the process, the GAP up to open the trading week was filled in before price rallied above the $7000 level.

May Bitcoin Futures Fill In The GAP

As a general rule, any GAP in pricing is eventually filled in. This concept is deeply rooted in the process of price discovery itself ― neglected price points typically end up being contested. For May BTC futures, this was certainly the case today.

May Bitcoin Futures (BTC), Daily Chart
May Bitcoin Futures (BTC), Daily Chart

No major reasons for the sudden plunge in BTC are being cited at the moment. For now, most in the cryptosphere are chalking it up as a huge number of stop loss orders being run, prompting a market panic. In other words, just another case of “Bitcoin being Bitcoin.”

Overview: Judging by the technical outlook, my bias remains bullish for BTC. Prices have bounced above the key 38% Retracement Level ($7102) and remain above downside support.

In a Live Market Update from yesterday, I outlined a long trading plan for Bitcoin. It looks like the play weathered the storm on the cash markets. For now, staying the course in anticipation of a return to $8000 is the play.

ABOUT THE AUTHOR See More
Shain Vernier
US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers