Does BTC drop to $ 3.5K? Colossal Correction incoming?

Bitcoin price has a CME gap of $ 3,500 – and given BTC’s historic tendency to close that gap, there is a possibility that the prevailing cryptocurrency could test the $ 3,000 region again. Earlier this month, Mark Dow, former economist and hedge fund manager of the International Monetary Fund (IMF), described Bitcoin as a “textbook short” and noted that the BTC macro trend continues to be unfavorable for buyers.

https://twitter.com/mark_dow/status/1248650126077251585

 

How does the CME gap arise?

The CME gap arises when the Bitcoin price moves after the exchange after the CME Bitcoin futures market has closed.For example, if the Bitcoin price was $ 6,600 when the futures market closed and rose to $ 7,000 when it opened, there is a gap of $ 6,600 to $ 7,000 at CME.Although CME makes up a large part of BTC’s global stock market volume, Bitcoin price is not affected by CME gaps. As a rule, it closes the gap if it is supported by other factors such as dynamics, volume, buying or selling pressure and technical structures.In fact, there is much to suggest that the CME gaps have been of less importance given the noticeable decline in the volume of the futures market since March.When the US stock market crashed, accredited and institutional investors showed signs of exiting the crypto market – at least in the foreseeable future. This led to a steep decline in volume on the Bitcoin futures market, reducing the impact of CME on BTC’s short-term price trend.