In the last post, we said that until January 10, the price of Bitcoin will be thrown in different directions, as the media will be very active in speculating on the topic of an ETF that may be approved on January 10.
Also, we promised to tell you the reasons why the correction has just begun. Naturally, in addition to the fundamental and technical reasons that we voiced earlier (read previous posts) ✔️
In this post we will look at the market from the point of view of technical analysis, but from a different angle in addition to the already existing technical picture.
✂️ GEPs
Everyone is waiting so much for ETF approval that they have completely forgotten that Bitcoin futures have been traded on the CBOE and CME exchanges in Chicago since 2018.
With the advent of this futures, institutional investors had the opportunity to legally long and short Bitcoin 6 years ago.
Therefore, large players who supposedly really needed Bitcoin so much that they could trade legally have been on the market for a long time without any ETF candy wrappers.
Let's get to the point 🔍
If you open the chart of this futures at$BTC Bitcoin, you can find as many as 4 unclosed GAPs:
1. Around $39600-40400
2. Around $34100-34300
3. Around $29,700-29,800
4. Around $26,200-26,500
❗️Gap (gap, discrepancy) - a price gap on the price chart on the stock exchange.
In trading circles, it is believed that GEPs will close sooner or later.
Moreover, no one knows the real reasons why the price eventually goes to close this gap, but the most logical of all opinions, in our opinion, is that the GEP affects a large trader and he returns the price in order to hedge.
In our experience, GEPs do indeed always close, but only in 90% of cases.
Taking into account the location of long liquidity zones, we come to the conclusion that we will eventually close at least 3 out of 4 SEPs.
❗️You can open this chart yourself, ticker BTC1! and see how previously all GEPs were always closed.
Moreover, a huge bearish divergence has finally formed on the daily timeframe.
❌ Personally, we do not see a single signal from the point of view of technical analysis indicating the continuation of the rally without correction, but we have already collected a whole royal flush from signals indicating the continuation of the correction (read previous posts), which will intensify after the final closure of the topic about ETFs.
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