The buying price of Bitcoin showed support at the emotional shield of $10,000 and bounced numerous occasions as it is already close to $11,000. Most of all, may Bitcoin break through this crucial area and keep on its bullish momentum?
Bitcoin holds $10,000 to avoid any extra correction on the markets The cost of Bitcoin couldn’t hold above $11,100 at the beginning of September and decreased south, causing the crypto markets to tumble down with it.
Given the hectic breakout above $10,000 in July, a large gap was developed with no considerable 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 area is actually a crucial guidance area, as it had been before an opposition area, particularly around the moment of the Bitcoin halving that taken place in May. Fortunately, flipping this major level for support increases the chances of further upward continuation.
Is the CME gap finding front run by the market segments?
As the price dropped from $12,000 earlier this month, most traders as well as investors had the eyes of theirs on the potential closure of the CME gap.
However, the CME gap didn’t close as buyers stepped in above the CME gap. The purchase price of Bitcoin reversed at $10,000 and not at $9,600.
In that regard, the probability of not closing this CME gap will increase by the morning. Not all CME gaps will get loaded as it’s just one more factor to consider for traders, just like support/resistance flips or the Fibonacci extension device.
What’s more likely is a considerable range bound period for Bitcoin, that might last for months. An equivalent period was found in the prior market cycle in 2016.
As the chart shows, a current uptrend is clearly noticeable since the crash with continuation likely.
The upper resistance level is actually $10,900. In the event that this’s broken, the following essential hurdle is found at $11,100 11,300. This particular resistance zone is the important level on excessive timeframes as well, which, if broken, may easily result in a massive rally.
The purchase price of Bitcoin may then notice a rapid rise to the next significant resistance zone at $12,100.
However, a state of the art in one-go is less likely as this would only be the first evaluation of the previous support zone ($11,100).
So, a possible continuation of the sideways range bound framework should not come as a surprise and would be similar to what happened directly after the 2020 halving.
To recap, clearly-defined support zones are realized at $9,200-9,500 and approximately $10,000; the resistance zones are actually at $11,100 11,300 as well as $11,900-12,200.