RE: Bitcoin shows extreme strength, lets look at big picture
@quickfingersluc I am wondering on one thing regarding the gap that needs to be filled you talk about in the video above. Its regarding the gap in the 1300 to 1500 USD back in April-Mail 2017.
In your video you show BTC USDT chart from the Bittrex exchange as example and on this exchange this 1300-1500 gap was filled.
BUT if I look at BTC/USD chart from Bitstamp or Bitfinex the gap still looks like a gap to me that want to be filled.
Question: Is it generally speaking enough if the gap was filled on one exchange only (BTC/USDT Bittrex) but is still a gap that wants to be filled on other charts from other exchanges (BTC/USD Bitfinex, Bitstamp, Hitbit) or could we expect a pullback that fill fix this gap on all charts of all exchanges?
Thanks for you effort, great insights and cheers!
I wish I had a good answer for you. But this market is its infancy stages still and so there is often big differences in prices between the exchanges. Especially in a panic dive, some exchanges dive much further faster than others. So we cannot expect all charts for the same coin to fill there gaps. Play out the panic with me: all exchanges are trying to move in sync, so there never is an exchange that is still dropping while another exchange is running up. Timewise they are atleast moving in the same direction at the same time, or very very close. So when one exchange hits area of support, because it dropped futher on its chart then the rest, I will bounce, and the other exchanges will follow, because timewise they all try to follow each other.. You cannot expect the exchange that made it $500 lower than everyone, to stay at the bottom and keep handing out that deal until all the other exchanges catch up. And as soon as it starts to bounce hard, you cannot expect the other exchanges not to start a bounce even though they didnt panic as deep.. Its a baby market right now and there is a lot of arbitrage opportunity still. So its really hard to know if these gaps on some charts will ever fill, because these coins are not moving in sync yet (timewise and distance, only timewise)..
Hi Luc,
yeah your answer makes sense. On the other hand one could also argue that there are exchanges where the bulk of trade volume are handled and others with a limited amount of trade volumen. I dont know for sure but my feeling is that the exchanges with the major trade volume are bitfinex, Bitstamp and Coinbase to some extend.
In addition, Bittrex "only" trades the Tether version of BTC/USD pair and not "real" Dollars. So USDT is not always exactly wort 1 real USD. So one could also very well reason that what you said might hold true if the occurrance was on one of the exchange mit major trade volume and might not hold true if the price movement was recorded on another less exchange with less trade volume.
Probably time will tell if it was a gap that still needed to be filled or if the little appatizer it had was enough to be a satisfied gap.
Keep up the great work and thank you for you elaborate answer!