The CME gap is closed

The CME gap that was around 81K is officially closed. For the last 1 to 2 weeks we have been watching it inch its way up, on low volume and constant bearish divergence, trying to close the gap. It finally did. So now what?

As you can see in the chart above, this is ultimately in a bear flag. To add insult to injury, there is bear divergence all over the charts. It tried to get above the line and failed. The price is riding up on the line but sitting right at the top. Precisely where I said it would. If you were in my Telegram group https://t.me/blockadvisorIO you would of seen the post.

And here we sit. Right on key.

Will it make it over the line? I still say no. I think it should roll over from here and complete the bear flag macro pattern.

There is too much divergence persisting on the chart. Note the green arrows showing higher highs and the red ones showing lower highs on the RSI. This is a sign of weakness and exhaustion to get this thing up high enough to close the gap.

For this to truly be bullish it would have to:

• Invalidate all the divergence
• Get above the blue line
• Retest the top of the blue line above on a macro scale (over days or a week)

So far we do not have that. Therefore, I still lean bearish.

Categorised in: Cryptocurrency Markets, Cryptocurrency Trading, Technical Analysis

This post was written by BlockAdvisor