Throughout this past weekend, Bitcoin kept clinging to the key figure $10,000 as technical factors hint at a short-term relief rally.
This weekend has been incredibly rough for a lot of cryptocurrency investors while massive sell-offs took place. The price of BTC dipped under $10,000 many times but seemed to keep finding short-term support.
The primary question that arises for the markets is whether around the corner is a relief rally or further downside movement shall be expected.
Here’s a brief look at the BTC price charts in order to determine what is going to happen next.
Bitcoin Adheres to $10K as a Psychological Support Level
A psychological barrier at USD 10,000 is acting as support at this time, representing that a short-term relief leap might be on the horizon for BTC. A clear $11,200 breakdown area activated a massive sell-off throughout the crypto markets.
This breakdown led toward the key support levels around the CME gap, where $9,600 is an important support level as well as $10,000.
As the most recent market movements have been volatile, numerous CME gaps could be seen on the daily price chart.
The daily chart that represents the CME futures on Bitcoin is now indicating 2 CME gaps. The clear one, between $9,650 and $9,950, is still empty.
However, as the cryptocurrency markets were volatile during this past weekend, a recent CME gap had been created above the latest price. This one is obviously between USD 10,450 and USD 10,600 and is expected to be filled in soon.
These gaps in Bitcoin futures are important because a vast number of the traders are considering them as clear indicators. Since a lot of traders are looking at these levels, these gaps are likely get filled mostly.
As such, these gaps are additional tools that help define the resistance and support levels, though they cannot be utilized as the only important factor when trading.