REJECTION! 🥵 Bitcoin 20% SELL-OFF AND New CME Gap Means THIS Will Happen Next!
Today is a historic day for Bitcoin as the official Bitcoin halving is now complete. A once-in-four-years event: its third halving, which has cut the miner block reward from 12.5 BTC to 6.25 BTC. As expected, we saw a sell-off immediately before the halving, coming into the week with a 20% correction from the recent highs of $10,000. Miners had the incentive to take profits from the hype built up (buy the hype, sell the news) from the halving. A new puzzle piece on the table is the fresh CME gap overhead between $9,300 and $9,800. Whales were able to bring the price down before the futures market opened on Monday. All three Bitcoin daily moving averages are below $8,090 until we see any breakdown below this range, then we can assume this is normal market behavior in a bullish trend. No one wants to catch a falling knife and so figuring out the bottom when no support has held is very dangerous in transition phases like this. The UTXO chart we discussed on our live stream from Friday predicted the top (for now) as it hit an all-time yearly high on May 08, which also happened February 13 (which marked the previous top).
A significant level to watch is $7,950, as this has been a known support level but is also showing confluence with the crucial daily moving averages. On the other side, a break above $9,200 is a critical level that was rejected earlier but can act as a breakout zone to fill the CME gap between $9,300 and $9,800. Equities continue their divided trends with tech breaking significant resistance levels leaving behind their counterparts. Transportation and Financials are barely making it through with weak price action at it’s 50-day moving average compared to tech, which is above all three. Gold is hovering at a critical level of support, so we will have our eyes peeled, waiting for any sign of direction as it stays bullish above all three daily moving averages.
Don’t fight the FED’s has been the mantra of recent times, but how long can this artificial price action last?