Bitcoin to Hit Critical Support Level as Analysts Eye Drop to CME Gap

• Bitcoin’s price is currently plunging, with the growing sell-side pressure coming from a combination of technical uncertainty, weakness in the stock market, and strength in the US Dollar
• BTC’s recent inability to break above $11,000 may also be one factor behind this recent turbulence, as it elucidated underlying weakness amongst bulls
• One trader, in particular, is now noting that he is expecting the crypto to see some serious near-term downside
• He is setting his sights on a move to the crypto’s CME gap in the mid-$9,000 region
• These is significant liquidity at this price region, so a decline to here may be just what Bitcoin needs to see a strong rebound

Bitcoin and the entire crypto market are currently facing one of the worst selloffs seen in a while.

While BTC is only trading down 5% from its recent highs, Ethereum and most other altcoins have incurred massive selling pressure that has erased the vast majority of the gains they have seen in recent weeks.

This current market-wide weakness may only grow worse in the near-term. One trader is now setting his sights on a further decline for Bitcoin, targeting the CME gap that sits in the mid-$9,000 region.

Bitcoin Losses Its Stability Following Rejection at $11,000

At the time of writing, Bitcoin is trading down over 3% at its current price of $10,600.

This marks a notable decline from its recent highs of $11,200 that were set earlier this week. The visit to these highs was fleeting, as BTC tapped them for a mere moment before facing a rejection that sparked a consolidation phase.

Bears have since prevailed over bulls, and the crypto is now poised to see further downside in the near-term.

One trader noted that the benchmark cryptocurrency’s delta is beginning to expand to the downside, signaling that a move to $10,100 could happen in the near-term.

“Delta expanding to the downside, looking at high 10100s,” he explained.

Image Courtesy of Red.

Analyst: BTC May Have to Decline to CME Gap Before Rebounding

While speaking about its near-term outlook, one trader stated that Bitcoin may need to fill its CME gap within the mid-$9,000 region before seeing further upside.

“BTC: Looks ready to finally go fill that CME gap. Didn’t quite tap the $11,200, 0.65 region I talked about.”

Image Courtesy of Mac. Chart via TradingView.

If this decline does occur, it will likely create a serious tailwind for the rest of the crypto market, adding fuel to the selloffs that altcoins are currently seeing.

Featured image from Unsplash.
Charts and pricing data via TradingView.