What's Next for Bitcoin Price?
|Sylvain Saurel||Sep 11|
After a new attempt to break the $12K resistance zone in the early hours of September 2020, Bitcoin was strongly rejected. As is often the case, when the Bitcoin price is repeatedly rejected by a resistance, a sharp drop finally takes place.
This is what happened again this time. The Bitcoin price then left the $11K — $12K zone in which it had been stuck for a month and then broke the $10.6K support.
During the weekend of September 5–6, 2020, the Bitcoin price continued to fall below the psychological barrier of $10K. At its lowest point, the Bitcoin price dropped as low as $9,850 on some trading platforms.
This $10K support finally held as the Bitcoin price moved back up to around $10.2K during this week.
Since then, the Bitcoin price continues to test this support:
As a result, great uncertainty has gripped the Bitcoin market for the coming hours and days. Here is the question that everyone is currently asking:
Where will the Bitcoin price go in the coming days?
Unfortunately, I don’t have a crystal ball available to answer this question with certainty, but I will try to give you some food for thought.
First of all, you should know that a new CME Gap was created last weekend when the Bitcoin price dropped on September 6, 2020. This CME Gap is located at $10,620.
There are two rules that are generally agreed upon regarding these CME Gaps:
90% of the CME Gaps are filled after a few days maximum.
10% of CME Gaps take longer to be filled. The $9.6K CME Gap created at the end of July belongs to this category.
A plausible hypothesis for the coming days would therefore be that the CME Gap at $10,620 would first be filled.
The Bitcoin price, which is currently $10.2K, could therefore increase to this $10,620 zone. Once the most recent CME Gap is filled, the next step would be a decrease in Bitcoin price to fill the CME Gap at 9.6K.
This hypothesis makes sense, as it would allow Bitcoin price to fill these two open CME Gaps.
With the Bitcoin price at $9.6K, some might be tempted to think of a scenario similar to that of March 2020 during the liquidity crisis that affected all liquid markets.
In my opinion, this scenario will not happen again. Despite the current downturn, Bitcoin’s fundamentals are still in favor of a Bullish scenario. This would be more in the context of a simple correction than the start of a Bear Market.
Besides, large buy orders from Bitcoin Whales have been recorded at $8,800 on trading platforms. If the Bitcoin price were to fall this low in the coming days, a strong rebound would be expected.
This rebound should mark the real rebound in the Bitcoin price in preparation for the start of its long-awaited Bull Run. A Bull Run that will take place throughout the whole of 2021 at least.
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