Bitcoin was trying to breakout at $10k, it didn't, now what?

Now that bitcoin has failed to breakout of the $10k resistance on numerous attempts, it looks like the path of least resistance may be down.

Sparking this negative momentum likely had something to do with those 40 bitcoins moving from a wallet yesterday that many had assumed/presumed might have belonged to bitcoin's creator, Satoshi Nakamoto...

More on that can be seen here:

@jrcornel/previously-unmoved-btc-moves-today-from-a-presumed-satoshi-owned-wallet

Regardless of what caused it, the near term trend appears to be lower, and the direction is really all we care about as investors/traders.

So, where to next?

My guess is the market is mostly likely going to make an attempt at filling the closest CME gap.

I recently talked about those levels here...

@jrcornel/which-bitcoin-cme-gap-is-going-to-fill-first

As I said then, and I say now, I think bitcoin is likely to fill that $7,600 gap before it goes much higher...

There is a ton of horizontal support on the chart around that level as well.

Plus, if you look at that above chart, a dip down to $7,600 would create an inverse head and shoulder pattern of sorts with that $7,600 touch being the final shoulder.

Which further adds to the case that when/if the price gets down there, it likely turns around there and starts moving back up.

We currently have an overwhelmingly long bias in the market judging by open interest on futures exchanges as well as leveraged long positions on Bitmex.

Adding all that up and I think bitcoin is about ready to fill that $7,600 gap.

What do you think?

Stay informed my friends.

Image Source:

https://imgur.com/gallery/lBKP4F2

-Doc