Will buyers end up crying for the $ 9,600 gap in CME’s Bitcoin futures?
Bitcoin price has hovered above $ 10,000 for some time, but will momentum tilt in favor of the bulls again to test the key multi-year resistance at $ 12,000 once again?
The recent week was relatively dull when it comes to the movement of the price of Bitcoin (BTC), as a slow uptrend was established after the price of Bitcoin rose above $ 10,000. This move then continued towards $ 11,000 on September 18, but was rejected by some short-term resistance levels.
Last week focused solely around Uniswap (UNI) and its token airdrop, combined with various listings on several of the major exchanges.
Bitcoin faces crucial resistance between $ 11,200 and $ 11,400
The area between $ 11,200 and $ 11,400 was acting as support for a substantial period before the big drop to $ 10,000 occurred. If this area between $ 11,200 and $ 11,400 can be overcome, a retest of the higher levels would again be among the possible options.
However, the level to test around $ 9,600 (where the CME gap is also) was not fully filled. The level was advanced by traders, and the price of Bitcoin rallied above the $ 10,000 level.
Now you can build a range with these two regions. On the downside, the $ 10,000 area is a significant support zone with the potential to hit $ 9,600. On the upside, the area between $ 11,200 and $ 11,400 is a crucial resistance area to break through.
Could we see the proof of $ 11,200 over the weekend?
The 2-hour chart shows us a clear picture of the current uptrend. Each previous resistance level was converted into support to continue this climb to higher levels.
The crucial hurdle to watch out for is shown by the big red box that sits between $ 11,200 and $ 11,400. If that resistance level is broken, further tests of the $ 12,000 level are back in play. However, if the price of Bitcoin loses the $ 10,750 area, a dip is more and more likely to occur, with a low range around $ 10,000 as the potential support levels.
The total market capitalization of cryptocurrencies is in another accumulation range.As long as the market remains above USD 250 or USD 255 billion, we can consider that the market is in a general uptrend. A new higher high was printed and the market is looking for a new higher low.
Breaking the $ 400 billion can ignite some rockets and drive the value up to $ 500 billion and even up to $ 700 billion.
The possible scenario for BTC / USD
It is very difficult to expect a clear break out of the resistance area between $ 11,200 and $ 11,400 in a single attempt. I suppose we will see more movements within the range after a rejection in the $ 11,200 area. Key levels to watch include holding support at $ 10,750 and resuming the run towards the resistance zone where a rejection will be the first thing to consider. If a rejection occurs, a retest bearish and confirmation of the $ 11,000 resistance will ensure further momentum to the downside.
In other words, a retest of the $ 11,000 level will likely carry momentum to the downside and increase the chance that we will see a retest of $ 10,600 and $ 10,200. For the bulls, setting new yearly highs is highly dependent on breaking the multi-year resistance level at $ 12,000 to continue the general uptrend for the remainder of the year.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.