BITCOIN Holds Strong Support of $10,000, Are We Going to Close the CMA Gap?
During the weekend of Labor's Day (in America) the whole crypto market has experienced red days Bitcoin dipping below $10K mark heading to the $9,600 - $9,800 CMA (Chicago Mercantile Exchange) gap.
Bitcoin CMA Futures. Source: TradingView
If you do not know what the CMA gap is:
A gap is an unfilled space or interval in the graph of the trading prices of an asset, caused by sharp movement in either direction, in this case Bitcoin. A study found that CME gaps have a 95% of being filled. Historically, every gap has eventually been filled over time.
The market has turned bearish after S&P 500 has dropped on 5th of September bringing the whole cryptocurrency market down. According to Coin Metrics, the correlation between S&P 500 and Bitcoin has reached all time high, meaning that Bitcoin is following what the Tech sector does. Investors usually aim for low correlation between assets in their portfolios in order to limit volatility.
However, some argue that the Bitcoin market is too strong to visit the CMA gap at $9,800 to close, moreover Bitcoin is not tight to traditional market. What is sure that every time Bitcoin dipped below $10,000 it has bounced back instantly, showing a strong support.
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