The price of Bitcoin showed support at the psychological screen of $10,000 and bounced many times as it is already close to $11,000. Above all, could Bitcoin break through this crucial location and go on its bullish momentum?
Bitcoin holds $10,000 to stay away from any extra modification on the markets The cost of Bitcoin could not hold above $11,100 at the first of September and decreased south, causing the crypto markets to tumble down with it.
Because of the busy breakout above $10,000 in July, a huge gap was developed without substantial support zones. As no support zones happened to be established, the cost of Bitcoin fell to the $10,000 area in one day.
This $10,000 place is a critical guidance area, as it had been earlier a resistance region, especially around the moment of the Bitcoin halving that happened in May. However, flipping this major level for structure and support brings up the prospects of further upward continuation.
Is the CME gap finding front-run by the markets?
As the price dropped from $12,000 earlier this month, most traders and investors had the eyes of theirs on the prospective closure of the CME gap.
Nonetheless, the CME gap did not close as customers stepped in above the CME gap. The purchase price of Bitcoin counteracted during $10,000 and not at $9,600.
In this regard, the chance of not closing this CME gap increases by the morning. You can not assume all CME gaps will get loaded as it’s just an additional aspect to consider for traders, just love support/resistance flips or the Fibonacci extension device.
What’s very likely is a considerable range-bound period for Bitcoin, which might last for a few months. A comparable period was observed in the preceding market cycle in 2016.
As the chart shows, a latest uptrend is definitely visible after the crash with continuation probable.
The upper resistance level is actually $10,900. If this’s broken, the next crucial hurdle is actually determined at $11,100 11,300. This particular resistance zone is the vital level on higher timeframes as well, which in turn, if broken, could bring about a tremendous rally.
The cost of Bitcoin may then notice a rapid rise to the next significant opposition zone during $12,100.
However, a breakthrough in one go is unlikely as it will just be the very first check of the previous support zone ($11,100).
Therefore, a potential continuation of the sideways range bound building should not arrive as a surprise and would be similar to what happened straightaway after the 2020 halving.
To recap, clearly-defined guidance zones are actually realized at $9,200 9,500 and around $10,000; the opposition zones are at $11,100 11,300 as well as $11,900 12,200.