There was a major last week Sell-off in all markets where the price of Bitcoin (BTC) lost more than 10% of its worth. Other cryptocurrencies have shown even more weakness, and the The price of Ether (ETH) fell by 30%.
Also, Commodity and equity markets have also fallen, and Nasdaq also had a big red week. The next step for the markets at this point would be to find a basic structure. Let’s look at the charts.
According to Coinmarketcap, Bitcoin’s market cap is currently $ 190,205,384,873.
Snapshot of the daily performance of the crypto market. Source: Coin360
Bitcoin seeks CME loophole while holding $ 10,000 psychological support
The daily chart shows that Bitcoin price has support in the previous resistance zone of $ 10,000. This resistance zone was established during the sideways move following the halving of the Bitcoin recommendation in May.
1-day chart for the BTC / USD pair. Source: TradingView
It can be clearly observed that Previous range support at $ 11,100 was lostand then it gave the impression that the price of bitcoin was ready to enter the world diving championship. However, It was not unreasonable to expect a decline like the one shown in the graph.
There is no clear support zone between $ 10,000 and $ 11,100So it wouldn’t be strange if this zone broke towards the previous resistance area of $ 10,000.
The uncovered Bitcoin futures loophole by CME calls for
4-hour chart for the CME’s BTC / USD pair. Source: TradingView
The CME chart still shows an open gap between $ 9,600 and $ 9,900. These loopholes are often filled, and the argument that The minimum at $ 9,600 is perfectly plausible.
As the graphic shows If Bitcoin price shows weakness over the weekend, a new potential CME gap may form.
Bitcoin price closed at $ 10,625 on Friday afternoon with CME futures. So If the price opens below $ 10,625 on Sunday evening, a new CME gap will likely form. In other words, This potential void could drive a relief rally up.
What’s Next for Bitcoin Price?
In this stadium, There may be minimal short-term potential, which means a relief rally can be expected.
However, It is questionable whether this will be the final minimum of this latest correction. However, some scenarios can be derived from the current diagram. The scenario assumes that the CME-Bitcoin futures gap may be closed.
2-hour chart for the BTC / USD pair. Source: TradingView
This scenario provides for a possible minimum formation around this gap, after which an upward divergence would confirm a reversal of the short-term trend.. The key points here are the support of around USD 9,600, after which a gap bounce must occur and the area of USD 10,000 must be reclaimed.
If this scenario is correct, the CME gap will close and the market could have bottomed on this correction.
Once $ 10,000 has been raised and the CME void closes, it is more likely that it will be retested at higher levels before another downward correction.
New possible support areas for the price of Bitcoin
However, If the CME gap does not stop the decline, the following levels should be viewed as potential areas of support.
XBT / USD 1-day chart. Source: TradingView
In the event of further decline below $ 10,000 and the CME gap, the primary support levels are at $ 9,400-9,500 and $ 8,800-9,100. These tiers should serve as short-term areas of support that a relief rally could follow.
Usually, Markets look unstable and investors should be careful when trading before a clear construction can be seen in the graphics.
The views and opinions expressed here are solely those of author and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risks. You should do your own research when making a decision.
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