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Bitcoin Price Pumps $600 to CME Gap, But $6.6K May Be End for Bulls

Bitcoin Price Pumps $600 to CME Gap, But $6.6K May Be End for Bulls

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The price of Bitcoin gained $600 on Monday to fill a futures gap but is this the end of the road for the bulls or is a V-shaped recovery still possible?

The price of Bitcoin (BTC) retraced to $5,800 during the weekend, which left the markets with an open CME gap between $5,900 and $6,620. Aside from that, buyers have stepped in at the $5,850 level, leading to a $600 rise in the price on Monday. However, is the correction over or is the market range-bound?

Crypto market daily performance. Source: Coin360

Crypto market daily performance. Source: Coin360

Bitcoin finds support at the $5,850 level

The bearish scenario showed the movements in the previous article, which stated the support levels at $5,800 as significant levels to be watched.

BTC USD 2-hour chart. Source: TradingView

BTC USD 2-hour chart. Source: TradingView

The support area (blue zone) around $5,800 was the first level to watch for traders and was hit during the weekend. Buyers stepped in, alongside a smaller time frame bullish divergence, indicating that a short-term trend reversal was on the horizon.

However, is that an indication of further upwards movements to occur? No. The market is still moving below a significant resistance level at $6,800-6,900, which is crucial to break to become bullish.

Given that the price of Bitcoin moved significantly during the weekend, the markets appear to open up on the CME futures on Sunday with a gap, as the next chart shows.

BTC USD CME 6-hour chart. Source: TradingView

BTC USD CME 6-hour chart. Source: TradingView

The CME chart clearly shows the existence of multiple gaps that are used as an additional narrative for traders. The CME futures opened $600 lower, leaving a gap until $6,620, which is close to being filled by the current price movements of Bitcoin.

Alongside this CME gap, the chart also shows multiple other gaps, which are one at $3,570, one between $8,300 and $9,000, and one at $11,600.

Combining the CME information with the price movements of Bitcoin, one conclusion can be drawn on the recent price action.

Bitcoin remains bearish until $6,900 breaks

BTC USD 1-day chart. Source: TradingView

BTC USD 1-day chart. Source: TradingView

The price of Bitcoin is still in bearish momentum until the price can reclaim the previous support at $6,800-6,900. However, such a move didn’t occur in the past week, which doesn’t open up for bullish thoughts.

By analyzing the daily timeframe, it’s spotted that the price is range-bound between several levels. The support area is found between $5,800-5,900 and $5,600, while the resistance areas are found at $6,350-6,400 and $6,525-6,575. No clear breakthrough means no clear direction of the market.

BTC USD 4-hour chart. Source: TradingView

BTC USD 4-hour chart. Source: TradingView

The 4-hour chart shows a similar view. The price of Bitcoin maintained above $6,600 for almost a week, after which $6,900 was rejected firmly.

Losing the $6,600 support was a bearish indication, which resulted in the price of Bitcoin dropping to the next support at $5,800. A clear bearish retest and rejection at the $6,550-6,600 would confirm the downwards momentum and would also close the CME gap, as discussed previously.

The total market capitalization of crypto needs to break $185 billion

Total market capitalization cryptocurrency 1-week chart. Source: TradingView

Total market capitalization cryptocurrency 1-week chart. Source: TradingView

The total market capitalization shows a clearer picture. The market capitalization of crypto lost a vital support level at $185 billion, which held support during the last part of 2019 and is currently being tested for resistance.

The significance of this level is also found on the left side of the chart. The $185 billion support zone held during 2018. Therefore, losing this level is an apparent bearish sign, and a clear breakthrough upward would be needed to get a bullish outlook on the markets.

Rejection at this level would indicate further downwards momentum towards a market capitalization of $105-110 billion, while a breakthrough of $185 billion could indicate further upwards momentum towards $240-250 billion.

The bullish scenario for Bitcoin

BTC USD 2-hour bullish scenario chart. Source: TradingView

BTC USD 2-hour bullish scenario chart. Source: TradingView

The bullish scenario is straightforward. The structure has to make a higher low in the coming day, through which the $6,050-6,100 level needs to become support.

The next step would be to reclaim the previous support at $6,600 for support and is a crucial level to break. If the price of Bitcoin can’t reclaim this level for support, further downwards momentum is warranted, and then the bearish scenario is applied.

However, an apparent breakthrough in this level would indicate strength. Likely levels to be expected after such a move are the $7,100-7,200 and $7,500 areas, as it’s to be expected that the price of Bitcoin would make a new high above $6,900 after reclaiming $6,600.

The bearish scenario for Bitcoin 

BTC USD 2-hour bearish scenario chart. Source: TradingView

BTC USD 2-hour bearish scenario chart. Source: TradingView

As stated earlier, the bull/bear scenarios pivot around the $6,600 area. The moment that the $6,600 area rejects and the CME gap gets closed, further downwards pressure is expected to occur.

However, such a move can take some time. The equity markets and cryptomarkets have shown a significant positive correlation recently, as both markets crashed and bounced heavily.

After these volatile movements, the volatility ends as the dust settles and new structures have to be established. Therefore, range-bound movements are likely to be played out in the cryptocurrency market as well.

But a rejection at the $6,600 area would indicate further downwards momentum and a lower high to be made on the chart. The levels to watch are $5,700-5,800 and $5,250-5,400 next for support. If the price of Bitcoin drops below $5,250, a further deep drop towards $4,000 can be expected to occur.

However, everyone hopes and would like to see Bitcoin break above $6,900, as then the conclusion can be drawn that the price confirmed a V-shape bottom formation.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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Key shipping company files for Chapter 11 bankruptcy

The Illinois-based general freight trucking company filed for Chapter 11 bankruptcy to reorganize.

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The U.S. trucking industry has had a difficult beginning of the year for 2024 with several logistics companies filing for bankruptcy to seek either a Chapter 7 liquidation or Chapter 11 reorganization.

The Covid-19 pandemic caused a lot of supply chain issues for logistics companies and also created a shortage of truck drivers as many left the business for other occupations. Shipping companies, in the meantime, have had extreme difficulty recruiting new drivers for thousands of unfilled jobs.

Related: Tesla rival’s filing reveals Chapter 11 bankruptcy is possible

Freight forwarder company Boateng Logistics joined a growing list of shipping companies that permanently shuttered their businesses as the firm on Feb. 22 filed for Chapter 7 bankruptcy with plans to liquidate.

The Carlsbad, Calif., logistics company filed its petition in the U.S. Bankruptcy Court for the Southern District of California listing assets up to $50,000 and and $1 million to $10 million in liabilities. Court papers said it owed millions of dollars in liabilities to trucking, logistics and factoring companies. The company filed bankruptcy before any creditors could take legal action.

Lawsuits force companies to liquidate in bankruptcy

Lawsuits, however, can force companies to file bankruptcy, which was the case for J.J. & Sons Logistics of Clint, Texas, which on Jan. 22 filed for Chapter 7 liquidation in the U.S. Bankruptcy Court for the Western District of Texas. The company filed bankruptcy four days before the scheduled start of a trial for a wrongful death lawsuit filed by the family of a former company truck driver who had died from drowning in 2016.

California-based logistics company Wise Choice Trans Corp. shut down operations and filed for Chapter 7 liquidation on Jan. 4 in the U.S. Bankruptcy Court for the Northern District of California, listing $1 million to $10 million in assets and liabilities.

The Hayward, Calif., third-party logistics company, founded in 2009, provided final mile, less-than-truckload and full truckload services, as well as warehouse and fulfillment services in the San Francisco Bay Area.

The Chapter 7 filing also implemented an automatic stay against all legal proceedings, as the company listed its involvement in four legal actions that were ongoing or concluded. Court papers reportedly did not list amounts for damages.

In some cases, debtors don't have to take a drastic action, such as a liquidation, and can instead file a Chapter 11 reorganization.

Truck shipping products.

Shutterstock

Nationwide Cargo seeks to reorganize its business

Nationwide Cargo Inc., a general freight trucking company that also hauls fresh produce and meat, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of Illinois with plans to reorganize its business.

The East Dundee, Ill., shipping company listed $1 million to $10 million in assets and $10 million to $50 million in liabilities in its petition and said funds will not be available to pay unsecured creditors. The company operates with 183 trucks and 171 drivers, FreightWaves reported.

Nationwide Cargo's three largest secured creditors in the petition were Equify Financial LLC (owed about $3.5 million,) Commercial Credit Group (owed about $1.8 million) and Continental Bank NA (owed about $676,000.)

The shipping company reported gross revenue of about $34 million in 2022 and about $40 million in 2023.  From Jan. 1 until its petition date, the company generated $9.3 million in gross revenue.

Related: Veteran fund manager picks favorite stocks for 2024

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Key shipping company files Chapter 11 bankruptcy

The Illinois-based general freight trucking company filed for Chapter 11 bankruptcy to reorganize.

Published

on

The U.S. trucking industry has had a difficult beginning of the year for 2024 with several logistics companies filing for bankruptcy to seek either a Chapter 7 liquidation or Chapter 11 reorganization.

The Covid-19 pandemic caused a lot of supply chain issues for logistics companies and also created a shortage of truck drivers as many left the business for other occupations. Shipping companies, in the meantime, have had extreme difficulty recruiting new drivers for thousands of unfilled jobs.

Related: Tesla rival’s filing reveals Chapter 11 bankruptcy is possible

Freight forwarder company Boateng Logistics joined a growing list of shipping companies that permanently shuttered their businesses as the firm on Feb. 22 filed for Chapter 7 bankruptcy with plans to liquidate.

The Carlsbad, Calif., logistics company filed its petition in the U.S. Bankruptcy Court for the Southern District of California listing assets up to $50,000 and and $1 million to $10 million in liabilities. Court papers said it owed millions of dollars in liabilities to trucking, logistics and factoring companies. The company filed bankruptcy before any creditors could take legal action.

Lawsuits force companies to liquidate in bankruptcy

Lawsuits, however, can force companies to file bankruptcy, which was the case for J.J. & Sons Logistics of Clint, Texas, which on Jan. 22 filed for Chapter 7 liquidation in the U.S. Bankruptcy Court for the Western District of Texas. The company filed bankruptcy four days before the scheduled start of a trial for a wrongful death lawsuit filed by the family of a former company truck driver who had died from drowning in 2016.

California-based logistics company Wise Choice Trans Corp. shut down operations and filed for Chapter 7 liquidation on Jan. 4 in the U.S. Bankruptcy Court for the Northern District of California, listing $1 million to $10 million in assets and liabilities.

The Hayward, Calif., third-party logistics company, founded in 2009, provided final mile, less-than-truckload and full truckload services, as well as warehouse and fulfillment services in the San Francisco Bay Area.

The Chapter 7 filing also implemented an automatic stay against all legal proceedings, as the company listed its involvement in four legal actions that were ongoing or concluded. Court papers reportedly did not list amounts for damages.

In some cases, debtors don't have to take a drastic action, such as a liquidation, and can instead file a Chapter 11 reorganization.

Truck shipping products.

Shutterstock

Nationwide Cargo seeks to reorganize its business

Nationwide Cargo Inc., a general freight trucking company that also hauls fresh produce and meat, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of Illinois with plans to reorganize its business.

The East Dundee, Ill., shipping company listed $1 million to $10 million in assets and $10 million to $50 million in liabilities in its petition and said funds will not be available to pay unsecured creditors. The company operates with 183 trucks and 171 drivers, FreightWaves reported.

Nationwide Cargo's three largest secured creditors in the petition were Equify Financial LLC (owed about $3.5 million,) Commercial Credit Group (owed about $1.8 million) and Continental Bank NA (owed about $676,000.)

The shipping company reported gross revenue of about $34 million in 2022 and about $40 million in 2023.  From Jan. 1 until its petition date, the company generated $9.3 million in gross revenue.

Related: Veteran fund manager picks favorite stocks for 2024

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Tight inventory and frustrated buyers challenge agents in Virginia

With inventory a little more than half of what it was pre-pandemic, agents are struggling to find homes for clients in Virginia.

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No matter where you are in the state, real estate agents in Virginia are facing low inventory conditions that are creating frustrating scenarios for their buyers.

“I think people are getting used to the interest rates where they are now, but there is just a huge lack of inventory,” said Chelsea Newcomb, a RE/MAX Realty Specialists agent based in Charlottesville. “I have buyers that are looking, but to find a house that you love enough to pay a high price for — and to be at over a 6.5% interest rate — it’s just a little bit harder to find something.”

Newcomb said that interest rates and higher prices, which have risen by more than $100,000 since March 2020, according to data from Altos Research, have caused her clients to be pickier when selecting a home.

“When rates and prices were lower, people were more willing to compromise,” Newcomb said.

Out in Wise, Virginia, near the westernmost tip of the state, RE/MAX Cavaliers agent Brett Tiller and his clients are also struggling to find suitable properties.

“The thing that really stands out, especially compared to two years ago, is the lack of quality listings,” Tiller said. “The slightly more upscale single-family listings for move-up buyers with children looking for their forever home just aren’t coming on the market right now, and demand is still very high.”

Statewide, Virginia had a 90-day average of 8,068 active single-family listings as of March 8, 2024, down from 14,471 single-family listings in early March 2020 at the onset of the COVID-19 pandemic, according to Altos Research. That represents a decrease of 44%.

Virginia-Inventory-Line-Chart-Virginia-90-day-Single-Family

In Newcomb’s base metro area of Charlottesville, there were an average of only 277 active single-family listings during the same recent 90-day period, compared to 892 at the onset of the pandemic. In Wise County, there were only 56 listings.

Due to the demand from move-up buyers in Tiller’s area, the average days on market for homes with a median price of roughly $190,000 was just 17 days as of early March 2024.

“For the right home, which is rare to find right now, we are still seeing multiple offers,” Tiller said. “The demand is the same right now as it was during the heart of the pandemic.”

According to Tiller, the tight inventory has caused homebuyers to spend up to six months searching for their new property, roughly double the time it took prior to the pandemic.

For Matt Salway in the Virginia Beach metro area, the tight inventory conditions are creating a rather hot market.

“Depending on where you are in the area, your listing could have 15 offers in two days,” the agent for Iron Valley Real Estate Hampton Roads | Virginia Beach said. “It has been crazy competition for most of Virginia Beach, and Norfolk is pretty hot too, especially for anything under $400,000.”

According to Altos Research, the Virginia Beach-Norfolk-Newport News housing market had a seven-day average Market Action Index score of 52.44 as of March 14, making it the seventh hottest housing market in the country. Altos considers any Market Action Index score above 30 to be indicative of a seller’s market.

Virginia-Beach-Metro-Area-Market-Action-Index-Line-Chart-Virginia-Beach-Norfolk-Newport-News-VA-NC-90-day-Single-Family

Further up the coastline on the vacation destination of Chincoteague Island, Long & Foster agent Meghan O. Clarkson is also seeing a decent amount of competition despite higher prices and interest rates.

“People are taking their time to actually come see things now instead of buying site unseen, and occasionally we see some seller concessions, but the traffic and the demand is still there; you might just work a little longer with people because we don’t have anything for sale,” Clarkson said.

“I’m busy and constantly have appointments, but the underlying frenzy from the height of the pandemic has gone away, but I think it is because we have just gotten used to it.”

While much of the demand that Clarkson’s market faces is for vacation homes and from retirees looking for a scenic spot to retire, a large portion of the demand in Salway’s market comes from military personnel and civilians working under government contracts.

“We have over a dozen military bases here, plus a bunch of shipyards, so the closer you get to all of those bases, the easier it is to sell a home and the faster the sale happens,” Salway said.

Due to this, Salway said that existing-home inventory typically does not come on the market unless an employment contract ends or the owner is reassigned to a different base, which is currently contributing to the tight inventory situation in his market.

Things are a bit different for Tiller and Newcomb, who are seeing a decent number of buyers from other, more expensive parts of the state.

“One of the crazy things about Louisa and Goochland, which are kind of like suburbs on the western side of Richmond, is that they are growing like crazy,” Newcomb said. “A lot of people are coming in from Northern Virginia because they can work remotely now.”

With a Market Action Index score of 50, it is easy to see why people are leaving the Washington-Arlington-Alexandria market for the Charlottesville market, which has an index score of 41.

In addition, the 90-day average median list price in Charlottesville is $585,000 compared to $729,900 in the D.C. area, which Newcomb said is also luring many Virginia homebuyers to move further south.

Median-Price-D.C.-vs.-Charlottesville-Line-Chart-90-day-Single-Family

“They are very accustomed to higher prices, so they are super impressed with the prices we offer here in the central Virginia area,” Newcomb said.

For local buyers, Newcomb said this means they are frequently being outbid or outpriced.

“A couple who is local to the area and has been here their whole life, they are just now starting to get their mind wrapped around the fact that you can’t get a house for $200,000 anymore,” Newcomb said.

As the year heads closer to spring, triggering the start of the prime homebuying season, agents in Virginia feel optimistic about the market.

“We are seeing seasonal trends like we did up through 2019,” Clarkson said. “The market kind of soft launched around President’s Day and it is still building, but I expect it to pick right back up and be in full swing by Easter like it always used to.”

But while they are confident in demand, questions still remain about whether there will be enough inventory to support even more homebuyers entering the market.

“I have a lot of buyers starting to come off the sidelines, but in my office, I also have a lot of people who are going to list their house in the next two to three weeks now that the weather is starting to break,” Newcomb said. “I think we are going to have a good spring and summer.”

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