The blood letting continues for Bitcoin and the rest of crypto...

Another day, and another bloodbath in the crypto markets, specifically the altcoin markets.

Well that is unless you are a LEO investor, but that is a story for another post:

https://hive.blog/hive-167922/@jrcornel/at-this-rate-leo-will-soon-be-worth-more-than-hive

The cause isn't exactly clear but it seems to be a liquidity crunch of sorts as the stock market sold off in tandem with bitcoin and the rest of the crypto markets the last few days.

We saw something similar back in March of this year but I highly doubt this one will be nearly as bad as that one.

Anyways, with the recent price action bitcoin is getting very close to filling that CME futures gap many have pointing to for weeks now.

Check it out:

(Source: https://www.tradingview.com/x/daEFBtkL/)

This chart is a few hours old, but as I type we are still yet to fill that gap.

We have seen bitcoin get pretty close with a test down around $9,800 which is only a hop skip and a jump away from filling that pesky CME gap.

To date something like 95% of all CME gaps have filled and this one is looking very much like it will be filled with in the next couple days if not the next couple hours.

The question then becomes what happens from there?

Does the CME gap fill represent the bottom for bitcoin in the near and medium terms or does it continue to drift lower?

(Source: https://www.tradingview.com/x/i1VBkDIz/)

Personally I suspect that bitcoin is going to bottom right around that gap.

There is a confluence of horizontal supports, diagonal trendline supports, as well as the gap that all point to that being a very good spot for the price to hold up at.

Plus you know we are very likely to get some sort of stimulus in the coming weeks that literally could be announced any day.

When that is announced I suspect the dollar to weaken again and risky assets to catch a bid again.

Worst case scenario is that announcement doesn't come until the end of September with the debt ceiling limit being reached.

The pain should be short lived folks.

Hopefully you have some dry powder!

Stay informed my friends.

-Doc