Bitcoin Pulls Back Down Into Futures Gap, But Is It Too Early for $8K?

The price of Bitcoin did touch $7,700 and made a sharp drop yesterday to close a CME futures gap at around $7,230.

The overview shows that Bitcoin is still trending down from the year's high at $13,900.

The total market capitalization chart is providing a similar view to the Bitcoin chart: a full retrace towards April / May levels and finding support in this zone.

The total market capitalization chart often provides a more unobstructed view of trends and potential support/resistance levels.

Where the total market capitalization chart is showing clear perspectives and trends of the market, the longs on Bitfinex are also showing significant market signals.

The chart above is showing the movement of longs in response to changes in Bitcoin price and should be viewed together with the BTC price chart itself.

Based on recent data, a potential bottom formation is more likely to occur in which the market breaks upwards based on historical data.

The futures market on the CME opened this week at a higher level than the close of last week, leading to a gap on the chart.

Gaps are a wide-spread phenomenon in the equity markets and are already becoming prevalent in the crypto market as well.

If the market is able to keep $7,200-7,250 as support, a copy of the blue box is likely to occur.