The cost of Bitcoin is actually regaining bullish momentum, nonetheless, the essential resistance level around $11,000 might possibly stay unchanged for a prolonged period.
While Bitcoin (BTC) has been showing weakness in recent days as BTC price dropped from $12,000 to $10,000, several light at the conclusion of the tunnel is showing up.
The cost of Bitcoin showed support at the psychological screen of $10,000 and bounced several occasions as it is currently close to $11,000. Most of all, can Bitcoin break through this essential location and then continue its bullish momentum?
Bitcoin holds $10,000 to stay away from any extra correction on the markets The price of Bitcoin could not hold above $11,100 within the outset of September and decreased south, producing the crypto marketplaces to tumble down with it.
Due to the hectic breakout above $10,000 in July, a huge gap was created without considerable assistance zones. As no support zones have been proven, the retail price of Bitcoin fell to the $10,000 region in 1 day.
This $10,000 area is an important guidance region, as it was previously a resistance region, particularly around the time of the Bitcoin halving that happened in May. However, flipping this major level for support increases the prospects of further upward continuation.
Is the CME gap getting front run by the market segments?
As the price dropped from $12,000 before this month, a lot of traders as well as investors had their eyes on the potential closure of the CME gap.
But, the CME gap didn’t close as buyers stepped in above the CME gap. The cost of Bitcoin turned around during $10,000 and not at $9,600.
In this regard, the probability of not closing this CME gap improves by the day. Only some CME spaces will get brimming as it is just an additional point to look at for traders, just like support/resistance flips or perhaps the Fibonacci extension application.
What is more likely is a considerable range-bound period for Bitcoin, that might keep going for months. An equivalent period was found in the earlier market cycle in 2016.
As the chart shows, a latest uptrend is definitely visible since the crash with continuation likely.
The upper resistance level is actually $10,900. In the event that this is reduced, the next crucial hurdle is found at $11,100 11,300. This opposition zone is actually the important level on increased timeframes as well, which in turn, if broken, could result in an extensive rally.
The purchase price of Bitcoin might then notice a quick rise to the next major resistance zone during $12,100.
But, a breakthrough in one go is less likely as this will simply be the first test of the earlier support zone ($11,100).
Thus, a potential continuation of the sideways range-bound framework shouldn’t come as a surprise and would be akin to what happened straightaway after the 2020 halving.
To recap, clearly defined support zones are discovered at $9,200-9,500 and around $10,000; the opposition zones are actually at $11,100 11,300 and $11,900-12,200.