On an hourly candlestick chart of continuous Bitcoin futures on the CME’s exchange some very unique and telling pattern pops out and is set to repeat for the fourth time in a 48 hour time span. This pattern is called a “bearish three gap” and usually signals an exhaustion of the current trend.

Despite A buildup of energy culminating all year formed by a bearish trend line that served as resistance that started all the way at the yearly high at $10,670 on February 13th on the upside. On the other end we had upward pressure from the support line drawn starting from the low of this year at $4,210 hit on March 12th.

In trading last night we had Bitcoin futures dip below our support line that formed the bottom of a compression triangle only to re-enter the triangle and has since attempted many times at breaking to the up-side.

BTC futures are leaning on their support line as of 4:45 ET, trading at $6,765 down $185 on the day. As we have been speaking about all this week BTC futures are approaching the apex of a long forming compression triangle as we speak BTC is scraping against the bottom trend line and appears almost certain that the break will be to the downside for a few reasons.

Bitcoin futures in the CME are trading up about $100 (1.47%) at $6,910 as of 3:45 EST. After breaking below the 21-day exp. moving average yesterday BTC found resistance at that point today as it traded above this price point for a brief moment before correcting.

Bitcoin futures plunged upon opening for the start of the week. Within the first four hours BTC lost $1,500 in a matter of four hours after gaping down $200 from Friday’s close in the CME. It quickly regained a small portion of its losses and is trading steady around $6,700 at AM EST.

Bitcoin finishes fourth week in a row posting gains and exhibiting its 4th consecutive higher intra-week high, this week’s came within $15 of current resistance at $7,500. This week we also broke above the 21-day exp. moving average (currently at $7,019) now trading above this technical indicator for three days now the last time this occurred was from Feb. 12 – 14.

BTC futures as of 4 PM EST are trading in essence unchanged on the day at $7,340 on the CME. Again it is the high that came in that I believe is telling in that we were unable to make a higher high and coming in at $7,475 has this rally looking like it may fizzle out before taking out $7,500 on a closing basis.

What we witnessed today was a round of profit taking in the U.S. dollar, gold and Bitcoin. Bitcoin futures as of 5 PM EST are trading down about 2.5% at $7,200. Even with a dip in pricing today BTC is still acting very bullish and should continue onto higher pricing.

Bitcoin is reacting to markets rallying today. Some of which like the U.S. indices are surprisingly all trading up over 6% at the close, I say surprisingly because I believe it is unwarranted. Experts say that the equities are responding positively to news that Europe may have passed its apex of new Covid-19 cases meaning that the new cases by day should start to decline. In the U.S.