Analysts fear another BTC drop towards the crucial CME futures gap at $9600 which was formed when the cryptocurrency surged from the $9000 level in late July as we reported in the Bitcoin news.
The CME futures are closed on the weekends despite the spot markets of Bitcoin still trading. This forms a natural gap in the CME price action many of which get filled within a week after they were opened. Bitcoin could fill the CME gap soon according to one analyst who saw the recent price action. He noted that the cryptocurrency lost the support of the pivotal support of $10,900 which is going to trigger the move towards $10,200.
“$BTC: Looks ready to finally go fill that CME gap. Didn’t quite tap the $11,200, 0.65 region I talked about.”
Most of the investors think that gap will be filled too as the commentator and programmer Ivan on Tech asked his followers if they believe that Bitcoin will fill in the gap. 60% of the respondents said that they believe Bitcoin will fill the gap in the future. However, not all analysts believe this to be true though. Some analysts fear another BTC drop and Willy Woo even commented:
“I’m still cautious of another short term dump to fill the gap but so far it’s looking like it’s been front-run for liquidity which is strongly bullish if we break resistance here. There’s a lot of bids in the spot order books wanting to snap up the gap in the mid-high 9000s.”
Woo made accurate predictions in the past when he said Bitcoin will decline to the $9000 level. He still believes that the medium-term trend is positive for bitcoin:
“Overall, I’m not expecting any mega dump, some chance of smaller whipsaws in the short timeframes, resistance is teetering. Not a bad time to get in if you’re a spot investor, given the longer range macro. There’s plenty of buy support below 10k, this is a buy the dip scenario.”
How will bitcoin fare in the near term seem to be a question that we cannot answer as it is mostly dependent on the legacy markets? As recently reported, Bitcoin indicators show that the BTC selloff is running out of steam with the cryptocurrency posting huge losses as buyers are having a hard time garnering significant momentum
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