Analysts are seeing a potential Bitcoin rally in the making, as the price of the USD fiat currency increased its value today. Bitcoin can visit $11,000 according to many, mostly because of the recent reversal of the Dollar Strength Index.
While many believed that the dollar would actually go lower from where it was, a surprising rally showed that the fiat currency is strong, and Bitcoin still has a CME futures gap unfilled at $9,600 but that does not mean that $11,000 won’t be reclaimed soon.
The price of BTC has been stagnating in the recent weeks, as it could not break above $11,000 and could not drop below $10,000, too. This produced ultimate sign of a continued range bound structure.
Such a range bound and sideways structure could strengthen some relief on the markets, mostly as the altcoins (especially in the DeFi sector) have seen massive selloffs in the recent weeks. Now that Bitcoin can visit $11,000, people think that things will turn bright faster as the futures expiration day is tomorrow, which may cause short-term volatility.
Currently, we can notice a downtrend since $12,500 on the daily chart, and the fakeout above $12,000 marked the end of an uptrend with a clear rejection of the $12,000 level as the main confirmation.
The charts now indicate that with constant lower highs being fabricated in the Bitcoin price news, all of this shows that the coin is in bearish mode since its peak high. First of all, the $12,000 level was confirmed for resistance, and right after that, the $11,100 area flipped from support to resistance.
Knowing that the current trend is down, a further drop is looking more likely after $10,000 to make another low. In that event, the next support level can be the CME gap at $9,600 which is still unfilled. The CME chart shows the gap that is still unfilled, and as the majority of the CME gaps get filled, it is also likely to expect a close of the CME gap in the future.
All of the markets (commodity, crypto, and equity) have been showing weakness in recent weeks, and investors flowing into “safe havens” such as the US dollar have been changing their play.
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