Bitcoin eyes $58K CME gap next as 8% BTC price rout sees longs 'rekt'

Bitcoin weekly losses edge toward 10%

Alan referred to the void between closing and opening levels on CME Group’s Bitcoin futures markets.

BTC price action tends to either rise or fall to “fill” these gaps after a weekend, and at present, they are turning $58,000 into a near-term target.

“We'd open for trading roughly in the green box. We still had a big gap open from last month which sits between $58K-$61K. We'd now make a new gap between ~$60K-$63K. Going to be an interesting week.”

Alan meanwhile predicted that the weekly close, which was set to leave BTC/USD down more than 8% at the time of writing, would not provide lasting relief.

“With that in mind, there is a low probability that we see BTC price recover for the Weekly close, but if we do, I expect it to be short lived,” he concluded.

“Expecting to test support next week and fill the gap. Bulls do not want to see a lower low.”

An accompanying chart highlighted buy and sell signals from one of Material Indicators’ proprietary trading tools.

BTC price volatility "guaranteed"

Adding his own thoughts to the CME gap debate, fellow popular trader CrypNuevo argued that a “flush” to $58,000 would have a cathartic effect on market sentiment.

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“Which means that optimistic traders bought at $60k-$61k. A flush to $58k will scare them enough to get rid off their position. That might be the trick the market needs.”

Nearly $200 million of long liquidations have occurred since Aug. 1, with BTC/USD cutting through the bulk of buy liquidity with its drop below $60,000.

“Long getting rekt, shorts getting in, dip buyers getting in. Volatility guaranteed here.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.