Bitcoin (BTC) has fallen more than 6% in the past three days. With $ 276 million CME Bitcoin futures expiring on August 28, traders are concerned that other flaws may be at hand.

After Bitcoin drops to $ 12,500, traders are anticipating two main scenarios in the short term.

Some technical analysts believe that Bitcoin is heading to either $ 16,000 or $ 9,600 initially, but the near-term outcome is still uncertain as it depends on certain levels of resistance and support being struck.

Traders expect either $ 16,000 or $ 9.6,000 Bitcoin
Bitcoin (BTC) could rise as high as $ 16,000 or as low as $ 9,600, according to a trader under the pseudonym Byzantine General.

According to traders, if the weekly BTC chart closes above $ 11,500, the probability that BTC will rise to $ 16,000. If the price stays below $ 10,500, the trader says $ 9,600 is the logical support. he wrote:

“Let’s make it simple. 11500 is a key level. If it’s over a week -> 16k close. When approaching below -> 10.5” clear support “. Because the 10.5 clear in ’19 might do nothing like 6k. 9600 is the next strong support.” (CME). ”

XBT / USD 1 week chart. Source: TradingView

XBT / USD 1 week chart. Source: TradingView

Another compelling reason that traders may expect a short drop to $ 9,600-9,700 is the CME Void. These gaps are formed on the CME Bitcoin futures market chart when the regulated market closes for the weekend.

The CME void usually closes in a short period of time, which increases the likelihood of resignation. There is also a small gap in CME at $ 16,000, but only in a lower time frame as the gap has been around for years.

In the short term, another cryptocurrency analyst named Mayne said that Bitcoin bulls should recover $ 11,700. Failure to regain this higher level of resistance could lead to a longer period of consolidation. The analyst noted:

“This is what you don’t want to see as a Taurus, the price with a fake pause and now down the stairs. The last two upward moves seem to represent distinct bearish reps. If these are sales then expect sales to go up soon. Cops should come and reclaim $ 11.7.” ”

The news campaign sale exacerbated the decline
Bitcoin rose briefly to $ 11,600 this morning after Jerome Powell, Chairman of the US Federal Reserve, spoke about inflation. In preparation for the speech, many investors expected gold and bitcoin to benefit from Powell’s speech on inflation control.

However, shortly after the speech ended, the price of BTC immediately fell from $ 11,600 and down to $ 11,125 on Coinbase. As Cointelegraph reported, this may be a convergence of market prices at the Jackson Hole symposium and a lower-than-expected inflation rate.

The decline in news sales in the bitcoin and gold markets exacerbated the downtrend, causing Bitcoin to return to its levels in early August.

The sharp decline in BTC price over the past three days has also broken the short-term bull market structure, canceling higher lows and highs.

Whether a change in this trend will lead BTC into a bearish scenario to reconsider the $ 9,600-10,500 range.

Source: CoinTelegraph