This past weekend was very tough for most cryptocurrency investors due to the huge sales. Bitcoin (BTC) has fallen below $ 10,000 several times but appears to have found short-term support at this level.

The main question for the markets is whether the bailout meeting is around the corner or whether further downside is expected.

The $ 10,000 psychological barrier is currently acting as support, indicating that an increase in short-term assistance may be on the horizon. The clear view of the $ 11,200 area caused a massive sell-off in the markets.

This decrease led to initial support levels around the CME gap, with $ 10,000 being a significant support level, plus $ 9,600.

As the recent market moves have been choppy, several CME gaps can be seen on the daily chart.

The daily chart of bitcoin futures CME now shows two CME openings. What is clear, between $ 9,650 and $ 9,950, is still pending.

However, due to the volatility of the markets over the weekend, a new gap arose in the CME above the current prices. This ranges between $ 10,450 and $ 10,600, and will likely be completed soon as well.

These gaps in bitcoin futures are important because most traders see them as an indicator. Since many traders look at these levels, these gaps are usually closed most of the time.

Thus, it is an additional tool for identifying support and resistance levels, although it should not be used as the sole buying factor.

A potential trend reversal is on the horizon, although the Bitcoin / USD appears to be still hovering. The blue rectangle indicates a fresh low low that was needed to confirm bullish rejection.

However, the market did not show massive strength after the jump of under $ 10,000, to only $ 10,300. This retracement has returned to its support area (around the green rectangle) where a potential higher low can now be set.

The next step towards a potential reversal will be a fresh high above $ 10300, which will be described in more detail in the next section.

A very likely scenario is a short-term relief meeting. This can happen in two ways.

The first can be seen in the chart where the $ 10,000 area should hold up as support and form a descending structure.

After holding the $ 10,000 range, the next step is to test $ 10,600 and $ 10,800 to $ 11,000. However, a clear breach of $ 10800-11000 is unlikely the first time. … critical areas seldom break in one attempt. Therefore, you must expect failure.

The second case of forming a local low means that the $ 10,000 level has not been held.

However, the price will only drop to the $ 9,600 CME gap, the second support level. If BTC price bounces off the $ 9,600 range and then bounces back to $ 10,000, a similar scenario like the one above could happen.

Source: CoinTelegraph

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