TL;DR Breakdown
- Bitcoin fell below $30k this past week, shattering the market.
- A quick recovery in the past few days has helped BTC cross $39k.
- Chicago Mercantile Exchange opening hints that Bitcoin won’t be able to cross $40k.
Bitcoin fell the past month to its lowest since January. This led to a great loss for many investors. But, in an attempt to recover, Bitcoin rose above $38k. This has led investors to believe that Bitcoin might again take over the crypto market. Although, this appears to be a distant dream for many investors. The reason behind this speculation is the gap in the opening of the Chicago Merchantile Exchange.
The Chicago Merchantile Exchange has opened with a gap of around $1,575 which has happened for the first time since the month of May. This has brought doubts and uncertainties in the market once more. It is also a very valid possibility that Bitcoin might fall below $37k.
Chicago Merchantile Exchange will affect Bitcoin’s price
On Friday, the Chicago Merchantile Exchange closed at $37,325 and subsequently, on Monday, it opened at $38,900. There is a belief among crypto market traders and investors, in general, that Bitcoin always seeks to reverse the trend in order to fill the gaps. This occurrence happens over 90 percent of the time.
Therefore, it becomes a firm belief that Bitcoin could either fall to fill the Chicago Merchantile Exchange gap that was created at $37,325-$38,900 or it could seek to fill the $45,295–$49,215 Chicago Merchantile Exchange gap. In current situation, it went up to reach $40,000 mark which caused excitement as well as confusion in the current crypto market.
Amidst this confusion, Elon Musk has tweeted that it is possible for Tesla to accept Bitcoin as payment once the problem of clean energy and environmental damage is reduced. Recently, El Salvador’s President has also made measures to put an end to this problem related to Bitcoin mining.
Also, recently, the inflow and outflow of Bitcoin has fallen to this year’s lowest. This means that the market could fall either way. The Chicago Merchantile Exchange’s gap opening means that Bitcoin could retrace steps to fulfill this gap. There are plenty of people who want Bitcoin to cross the $40k mark and continue its dominance. Therefore there is also a high chance of recovery of Bitcoin from the bearish trend.
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