Bitcoin Price Analysis – BTC Coin on Candle Chart Figure Showing Bitcoin Price
Welcome to our CryptoMonday weekly review of week 10. As usual, there was a lot worth mentioning to report this week and so it comes as no surprise that we can once again come up with a whole range of interesting news.
Our topics this week revolved around the Bitcoin price and how the current price increase of BTC was already announced at the beginning of the week, the glimmer of hope for Ethereum on the horizon and the Crypto Revolt review prospect of a 100-fold scaling solution, the next wave of problems for Ripple and the exciting question of whether 0.01 BTC is already enough to be among the richest 15% in the world in 10 years.
And of course, that was far from all! Due to the fact that the Bitcoin price is currently trading at new highs, we have prepared a dewy analysis for you, in which we explain what to watch out for in all the euphoria.
Bitcoin price cracks its all-time high again
Before we jump into the weekly review, let’s first address the fact that the Bitcoin price is currently trading at new highs of around $60,700. Yesterday evening, the price of BTC even reached a new all-time high of around $61,800. Has the important hurdle of $60,000 been cleared and is the way to the top clear?
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Well, as joyous as this event is, the coming days and weeks should still be taken with a grain of salt. Primarily for 3 reasons, which we will get to shortly here.
1. the bitcoin price rises but the volume falls
A big warning signal is always a rising price in an uptrend, which however increasingly loses volume. In fact, during an uptrend, you want to see clearly recognisable rising volume, or at least consistently high volume. Similar to what was seen with BTC in mid-December to mid-January. Since then, the Bitcoin price has always climbed to new heights, but with less and less volume. To illustrate the whole thing, you could also say that the BTC bull is slowly but surely running out of steam.
2. larger price actions at the weekend tend to form gaps
As we all know, the crypto market trades 24/7. But of course this is not the case everywhere. The exchange is still closed over the weekend and bitcoin CME futures, for example, are not traded over the weekend. However, if there are major price deviations on Saturdays and Sundays, then so-called gaps can form on the futures market. This is exactly the kind of gap we are facing right now.
The closing price on Friday was $57,070. So at the current Bitcoin price of just under $60,700, a $3,630 price gap would open up on Monday. If the Bitcoin price continues to rise, it will logically be larger; if it falls, it will be smaller or not occur at all.
Why would a price gap be interesting at all?
Price gaps have the tendency to close again. This is not necessarily the case, but usually when gaps occur, the price returns to that level sooner or again to close the gap. The last time such a gap formed was at the end of 2020. It has not been closed to date. However, that does not mean that it will not close. The Telegram channel of Bitcoin-Bude says in this regard:
The last time a major price gap formed was between 24 and 28 December 2020, between approximately $23,510 and $26,680. This has not been closed to date. But as I said, this does not mean that it could not still close. In fact, the average closing time of such continuation gaps in an upward trend is 2.5 months.