Quick take:
- According to Willy Woo and Mati Greenspan, Bitcoin’s CME gap at $9,700 might never get filled
- Bitcoin’s Metcalfe Value is now above $11,300 and could signal a move up by BTC
- Bitcoin has the weekly close ahead and $10,200 to $10,500 is an area of interest for bulls
The first week of September was a tumultuous one for Bitcoin as its value dropped hard from $12k levels to sub $10k. During that first week, the King of Crypto almost lost this psychological price level on numerous occasions. This led many crypto traders to believe that Bitcoin was on a sure path to fill the CME gap at $9,700 set in late-July.
However, Bitcoin rebounded with every drop below $10,000 leading Tyler Winklevoss to declare that $10k was BTC’s new baseline.
Bitcoin’s (BTC) CME Gap at $9,700 Might Never Get Filled
The resilience of Bitcoin in maintaining its value above $10k has led both Willy Woo and Mati Greenspan to conclude that the $9,700 gap might never get filled. According to Willy Woo, if this happens, it will be the first Bitcoin CME Gap never to be filled. He explained this further on Twitter as follows.
I’d say there’s a fair chance this CME gap may not get filled, so far it’s been front run for liquidity. Every dip snapped up. If so it’ll be the first CME gap on daily candles that remains unfilled.
Mati Greenspan added to Willy Woo’s analysis by explaining that CME gaps are not always filled. However, the volatility of the markets makes it very likely they will be filled. Mr. Greenspan’s comments can be found in the following tweet that also quotes Mr. Woo’s statement on the CME Gap.
Very true. Gaps are not always filled. They just usually are. Not because there's a gap there but because markets are volatile and prices have a tendency to repeat themselves. https://t.co/UqvjKLlggT
— Mati Greenspan (tweets ≠ financial advice) (@MatiGreenspan) September 11, 2020
Bitcoin’s Weekly Close is Hours Away
With today being Sunday, Bitcoin’s weekly close is only hours away and a close within or above the $10,200 to $10,500 area, will surely be a good sign for bulls. More so due to the fact that Bitcoin’s Metcalfe Value is at $11,362 according to the team at Cane Island Alternative Advisors.
#bitcoin pic.twitter.com/DDrnVBd7nN
— Cane Island Digital Research (@CaneDigital) September 12, 2020
This means that Bitcoin’s current price is very much deviated from its value according to activity on its network. Therefore, once the dust settles on the previous sell-off that almost broke $10k, Bitcoin could well be on its way to prices above $11k.