Bitcoin prices are nearing an all-time high, but there is still bear pressure lurking in the background of digital assets. With new peaks surge over the weekend, multiple gaps have been created, and history suggests that Bitcoin needs to come back to fill these gaps before it can start rallies again. These gaps indicate that they will return to previous all-time highs before the rally begins last week.
The V-shaped pattern indicates that the bear is in control
Crypto Analyst Youriverse explained the situation with Bitcoin and why crashes occur very quickly. The first point he pointed out was the fact that cryptocurrency created a V-shaped pattern after hitting an all-time high of over $123,000, which is usually bearish. This is because it shows a shift towards what sellers have in control as profits become more pronounced. This is just the start as more bearish developments are on the rise now.
Two fair value gaps (FVGs) have been created on the 4-hour chart, one already filled. It first happened at $119,000 and $120,000 in a retest, and was ultimately rejected. So this fills another gap, which is the 4H FVG at previous highs. This gives us credibility in the analysis and suggests that other gaps created can also be entered.
Analysts are just over $111,000 over the second 4H FVG. This coincides with the previous high rotational resistance. He believes this is what makes the level “magnet.” Especially when investors start to make profits. Strong sales pressure could provide the extra momentum needed to lower prices towards the $111,000 level.
Another big problem right now is the price of Bitcoin. CME gap formed Over the weekend, and as prices go backwards, the CME gap is filling up at levels around $114,000-116,000. There was already an attempt at the beginning of the week. However, $114,000 was not touched. If this CME gap is met, there is even more chance that the second FVG will be filled at $111,000.
Bitcoin prices still show bullishness
The bearish of the gap is still heavily on the price of Bitcoin, but there is still a bullishness left for cryptocurrency. This example is volume that rises with price increases, suggesting that volume is dominated by buyers at this level. Coinglass data shows that there are averages over $100 billion this week.
The Bitcoin Fear & Greed Index is currently still greedy and has not yet entered the territory of extreme greedy, which is usually when the top is marked. Also, open interest is close to the highest level of history, potentially pushing prices ahead of revisions.
Featured Images of Dall.E, Charts on tradingView.com
Editing process Bitconists focus on delivering thorough research, accurate and unbiased content. We support strict sourcing standards, and each page receives a hard-working review by a team of top technology experts and veteran editors. This process ensures the integrity, relevance and value of your readers’ content.