The Bitcoin bearish trend is anticipated to continue for the world’s largest digital asset and will go further beyond the $10,300 support level. Some of the analysts have stated that the CME gap is the reason behind the recent cryptocurrency crash. The CME gap had taken place lately when the Bitcoin market made an unexpected move outside of Chicago’s Mercantile Exchange’s trading hours. The gap has been noticed in the middle of August when Bitcoin had risen above $10,000.
The graph would be retracted through filling the gap with the missing Bitcoin (BTC) price where the price is likely to fall below $10,000 and grounding somewhere around $ 9,500. Nevertheless, many crypto followers and analysts do not blame the CME gap for the crypto crash. They believe that the DeFI hype and the sudden spike in the Ethereum (ETH) gas fees have contributed mostly for the Bitcoin bearish trend.
Profound Selling Pressure Causes Bitcoin Bearish Trend
Bitcoin has dipped nearly 4% in just a single day and has failed to defend the maintained $11,200 – $11,400 support. An analyst states that on the 2nd of September 2020, a massive influx of the Bitcoin digital asset into the exchange had increased the selling pressure.
An on-chain analyst named Philip Gradwell had explained in his tweet that this tension on selling was solely generated when investors in a robust number had plunged to sell their holdings as soon as Bitcoin hit $12,000. As stated by the analyst 92,000 BTC was placed for sale on the 2nd of September, 2020 (Wednesday) that possessed much fewer buyers at that time. He furthermore added that the market has still not absorbed the pressure yet. Also, when Bitcoin, the liquidated digital currency will again surface the market, it will further dip below $9,000, causing Bitcoin bullish trend.
Bitcoin Is Likely To Nosedip Below $8,000
Most of the reports suggest that the updated support levels for the BTC digital asset would drop near $9,000. But some of the others predict that there would still be a lift in the Bitcoin prices that could touch the marks of May – June 2020. As stated by the Triple Fib Amplitude Arcs, Bitcoin could further crash below $8,000 or $7,000. Some other reports suggest that Bitcoin would strive to find new support levels that surround $8,500 to $9,000.
Collecting all information together, most of the crypto analysts predict BTC downtrend at the current time. While some others believe that the support levels would be created below $8,000 having a resistance of $10,000.
Contrasting to this, the price of gold and silver has also gone down along with the fear that surrounds the crypto market and strengthened the dollar. Combining everything, the Bitcoin investing phase might have just started, although one’s own input in research could be more profitable.
Source: Coin Pedia
Disclaimer: Read the complete disclaimer here.