Bitcoin (BTC) Price Analysis: September 9, 2020
Bitcoin is currently struggling to stay above the $ 10,000 and $ 9,900 support levels. The leading cryptocurrency was trading at $ 10,155, according to CoinMarketCap data at the time of writing.
According to analyst Aayush Jindal, the price is currently facing a major hurdle near $ 10,200 and the 100 hourly simple moving average. There is a new bearish channel formed with resistance around $ 10,150 on the hourly chart of the BTC / USD pair. The pair could drop drastically if it breaks below the recent volatility of $ 9,860.
Bitcoin Price At Risk
Yesterday, we saw several positive signs for Bitcoin price above $ 10,200. However, BTC struggled to gain bullish momentum above the $ 10,300 and $ 10,400 levels.
But BTC then fell below the $ 10,200 support and fell below the 100 hourly simple moving average. BTC is struggling to stay above the $ 10,000 and $ 9,900 support levels. An initial upside resistance is near the $ 10,120 level.
The main resistance in BTC is near the $ 10,200 level and the 100-hour SMA, according to analyst Jindal. To avoid a sharp drop, the price must break the channel resistance and then gain strength above the $ 10,200 level. The next main resistance is near the $ 10,400 level, where the bulls can attempt a clear break above the $ 10,500 resistance.
Will there be a Sharp Drop in BTC?
If Bitcoin fails to cross the $ 10,200 resistance, there is a huge risk of decline. The main support is close to $ 9,900 and $ 9,850. A close below the $ 9,850 support could initiate a sharp decline. In the case stated, the price could drop to $ 9,500 and then $ 9,200 in the near term.
CME and Bitcoin
According to FX Street’s analyst Lorenzo Stroe, Bitcoin created a loophole that has not yet closed on July 24. Historically, CME gaps have always been good indicators of future price action. As is known, the Bitcoin market is open 24/7, which means it never closes and cannot create a gap, but CME, a derivatives market, can create these gaps. CME Bitcoin futures created its latest deficit on July 24 at $ 9,665. This happens when the market closes and then opens at a different price, leaving a gap behind.
According to analyst Stroe, when we look at the CME Bitcoin chart, we can see that historically every gap has actually closed. Some gaps only take a few days to fill, while others may take up to three months, as in June 2019. Bitcoin touched $ 9,890, which is still over $ 9,665 and the gap is not currently considered filled. Bitcoin is exceptionally close to filling the gap, but it seems that the bulls are already buying from the bearish and not allowing the leading digital asset to drop below $ 10K.