Bitcoin’s price manifested support at the mental barrier of $10,000 and jumped numerous times as it’s already close to $11,000. Most importantly, can Bitcoin discover this crucial area and continue its bullish momentum?
Bitcoin’s price couldn’t operate above $11,100 at the opening of September and descended south, prompting the crypto markets to plunge with it.
Given the fast-paced breakout over $10,000 in July, a considerable gap was formed without reliable support zones. As no support zones were ascertained, Bitcoin’s price dropped to the $10,000 area in one day.
This $10,000 area is a crucial support area, as it was earlier a resistance area, especially around the time of the Bitcoin halving that happened in May. But presently, flipping this basic level for support enhances the chances of further upward increase.
Is the CME gap going front-run by the markets?
As the price sank from $12,000 earlier this month, most traders and investors had their eyes on the CME gap’s possible closure.
Nevertheless, the CME gap didn’t close as buyers moved in above the CME gap. The price of Bitcoin changed at $10,000 and not at $9,600.
In that respect, the possibility of not closing this CME gap progress by the day. Not all CME gaps will get named as it’s just extra factor to consider for traders, just like support/resistance flips or the Fibonacci extension tool.
What’s more probable is a wonderful range-bound time for Bitcoin, which may persist for months. A corresponding period was seen in the prior market cycle in 2016.
A possible scenario for Bitcoin
The upper resistance level is $10,900. If this is crushed, the next crucial obstacle is found at $11,100-11,300. This resistance zone is the foundational level on higher timeframes as well, which, if violated, may result in an extensive rally.