The price of Bitcoin showed support at the emotional shield of $10,000 and bounced numerous times as it is currently close to $11,000. Most importantly, can Bitcoin break through this crucial location and keep on its bullish momentum?
Bitcoin holds $10,000 to avoid any further modification on the markets The cost of Bitcoin could not hold above $11,100 at the first of September and dropped south, causing the crypto markets to tumble down with it.
Given the hectic breakout above $10,000 in July, a big gap was created without considerable support zones. As no assistance zones were established, the cost of Bitcoin fell to the $10,000 area in 1 day.
This $10,000 place is a crucial help area, as it was before an opposition area, especially near the moment of the Bitcoin halving that happened in May. However, flipping this key level for support raises the chances of further upward continuation.
Is the CME gap finding front-run by the marketplaces?
As the cost dropped from $12,000 before this month, many traders and investors had the eyes of theirs on the potential closure of the CME gap.
Nevertheless, the CME gap did not close as customers stepped in above the CME gap. The purchase price of Bitcoin turned around at $10,000 and not at $9,600.
In that regard, the probability of not closing the CME gap improves by the morning. Not all CME spaces will get brimming as it is simply one more factor to think about for traders, just like support/resistance flips or maybe the Fibonacci extension device.
What is much more likely is actually a substantial range bound time for Bitcoin, that might last for a few months. A comparable time was found in the previous market cycle in 2016.
As the chart shows, a latest uptrend is clearly noticeable since the crash with continuation likely.
The upper resistance level is actually $10,900. If this’s broken off, the following vital hurdle is actually found at $11,100-11,300. This particular resistance zone is actually the crucial level on higher timeframes also, which in turn, if reduced, can easily lead to an extensive rally.
The purchase price of Bitcoin might then see a rapid rise to the following significant opposition zone at $12,100.
Nevertheless, a breakthrough in one go is unlikely as this will just be the first check of the previous support zone ($11,100).
Thus, a possible continuation of the sideways range-bound structure shouldn’t come as a surprise and would be comparable to what happened directly after the 2020 halving.
To recap, clearly defined support zones are actually realized at $9,200-9,500 and approximately $10,000; the opposition zones are at $11,100-11,300 and $11,900-12,200.