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- According to Bloomberg, Bitcoin shows the first buy-signal since the 200% rise after the fall to below $5,000 in March.
- Analysts say that BTC needs to break the $11,200 mark and close above this new level on the daily chart to remain bullish.
- A correction below the $10,000 mark could lead to the CME gap filling to $9,600.
Bitcoin was able to continue the upward trend of the last few days and briefly rose to $11,090. Thus, BTC broke through the important $11,000 mark for the first time in 4 weeks. At the time of going to press, the Bitcoin price has stabilized at $10,890 and thus recorded a plus of 0.97 % in the last 24 hours. The market capitalization is still $201 billion and the Bitcoin dominance stands at 57.5 %.
According to the news and media company Bloomberg, Bitcoin shows the first clear buy signal since the start of the corona pandemic in March. This is the conclusion of a new report considering the GTI (Global Strength Indicator). Further indicators also show that Bitcoin could reach a new annual high if it rises above the USD 12,000 mark. Nigel Green, Chief Executive and founder of the deVere Group, states in this sense that Bitcoin lives up to its reputation as digital gold:
It has already earned it the label ‘digital gold’ and I believe its status in this regard will grow exponentially over the next year or two.
Other price drivers are the entries and developments of institutional investors. For example, in August, financial giant Fidelity Investmens launched its first institutional Bitcoin fund, which has continued to attract other financial heavyweights to date. Steve Ehrlich, Chief Executive Officer and co-founder of Voyager Digital, is also extremely bullish for BTC:
The price of Bitcoin is reflective of the belief that Bitcoin is a hedge against the overall global economy.
Other analysts, including Josh Rager, are bullish about Bitcoin and the further price development. Nevertheless, Bitcoin must close above the $11,000 mark on the daily chart and continue to break through the next resistance along the $11,200 mark. Rager does not rule out a correction below the $10,000 mark. In this case, the remaining CME gap of $9,600 could be closed.
Still below previous range before the drop and want to see price move back up over $11,200
Will watch for a potential rejection at this level
But closing back above $11ks is what I’m looking for next
A breakdown to low $10ks likely leads lower (CME gap $9600s) pic.twitter.com/ta3dYesCf4
— Josh Rager 📈 (@Josh_Rager) September 16, 2020
So-called CME gaps occur when Friday’s closing price on the Chicago Mercantile Exchange (CME) deviates significantly from Monday’s opening price. Since the CME is always closed on weekends, such gaps can occur, which can then be closed by Bitcoin. The last CME gap stands at $9,600 and has not yet been closed. In the community, this technical indicator is regarded as another tool, but is also controversial in terms of its informative value.
“Big Chonis Trading” states that Bitcoin has been testing the last resistance level of mid-August at $11,100 in the last few hours, but was rejected in the first attempt. In his opinion, Bitcoin will rise above the $11,900 mark in the coming days, laying the foundation for a new Bull Run by the end of the year.
— Big Chonis Trading😷 (@BigChonis) September 16, 2020
Despite positive price developments, the mood in the social networks is restrained
The Bitcoin Trader“CRYPTO₿IRB” has shared a chart with his followers that shows that the basic mood is rather bearish. According to current data from the analysis platform Santiment, the community currently expects a significantly lower price in the range of $8,000 to $9,000. However, the analyst also pointed out that this indicator has not always been true in the past.
— CRYPTO₿IRB (@crypto_birb) September 16, 2020