But Bitcoin Can Still Drop to $2.7K While Everyone's Bullish

As the Bitcoin price begins to slowly ascend, the question on everyone's minds is whether the latest bottom is in, or whether there is more pain ahead.In this article, I will aim to provide some insight as to what one can expect based on the information from the charts.

In last week's analysis, I pointed out that the CME gap was higher than the weekend price, 7% higher in fact, and as expected this gap was filled on Dec. 4 as a $560 candle appeared out of nowhere taking the price from around $7,240 to $7,800 in a matter of minutes.

The Bitcoin price closed on the CME Futures charts at $7,495, and at the time of writing this Sunday evening, Bitcoin is trading at around $7,514.

With barely any difference in the price this week, the CME gap filling will not be something so easy to spot unless, of course, the price of Bitcoin continues to rise.

Should the same pattern continue, the bottom falls around May 2020.This is quite interesting, considering the mining reward halving falls at the same time; and historically the price of Bitcoin typically increases after, not before the event.

How much did the Bitcoin price fall during this last phase? Can that give us an indication as to what price the bottom could be?

During the first 2 weeks of May 2018, BTC price ranged between $8,800 and $9,900.

After the CME gap was filled, the price failed to hold up.

Bitcoin needs to maintain its price above $6,900 which is shown as support on the weekly Bollinger Bands indicator to have any hope of regaining some of its value.

Should the BTC/USD increase throughout the week, the resistance I see as key for the bulls is around $9,200, which could then flip the Bitcoin market bullish.