While Bitcoin (BTC) has shown weakness in recent weeks as the price of BTC has fallen from $ 12,000 to $ 10,000, there is some light at the end of the tunnel.

The Bitcoin price showed support for the psychological barrier of 10,000 dollars and bounced back several times when it was already close to 11,000 dollars. More importantly, can Bitcoin be able to break through this important area and continue its bullish momentum?

Bitcoin has $ 10,000 to avoid further market correction
The Bitcoin price could not stay above $ 11,100 in early September and plunged south, causing the cryptocurrency markets to crash with it.

Given the rapid break above $ 10,000 in July, a large gap formed without significant support zones. Since no support zones were established, the bitcoin price fell to the $ 10,000 range during the day.

This $ 10,000 area is an important support area, since it used to be a resistance zone, especially around the time Bitcoin fell in two, which happened in May. But now this important level of support is changing the chances that the trend will continue.

Is the CME gap triggered by the markets?
With the price falling from $ 12,000 earlier this month, most traders and investors focused on the possibility of closing the CME gap.

However, the CME gap was not reduced as buyers exceeded the CME gap. The Bitcoin price has changed by $ 10,000, not $ 9600.

Because of this, the probability of the CME gap not closing day by day increases. Not all CME holes will be closed, as this is just another factor that traders should consider, just like the support / resistance fluctuations or the Fibonacci expansion tool.

This is likely to be a massive period for Bitcoin that could last for several months. A similar period was observed in the previous market cycle in 2016.

As shown in the chart, the current bullish trend is clearly visible after the crash with the potential for continuation.

The upper resistance level is $ 10,900. If it breaks, the next critical hurdle will be $ 11,100-11,300. This area of ​​resistance is also a central level in the older time frames, where an eruption can lead to a significant encounter.

The Bitcoin price can then quickly go to the next major resistance range of $ 12,100.

However, a one-time breach is unlikely, as this will only be the first test of the previous support zone ($ 11,100).

Therefore, the continued use of prams with a limited selection should not come as a surprise, and will be comparable to what happened immediately after halving in 2020.

Keep in mind that well-defined support areas are at $ 9,200-9,500 and around $ 10,000; The resistance zones are $ 11,100, $ 11,300 and $ 11,900-12,200.

Source: CoinTelegraph