After falling 17.5% to a monthly low of $ 9,817 last week, Bitcoin (BTC) has returned to a narrow range of $ 9,800 to $ 10,600.
The digital asset has not set a clear pattern of high daily lows and lows, but as Cointelegraph contributor Rakesh Ubadhyay put it:
“The long tail of the lights over the last five days shows that the bulls bought at lower levels, but failed to push the price above the upper end of the $ 10,625 range, indicating that demand at higher levels is shrinking.”
While the bitcoin price found weak support around $ 10,100, the price could not hold above $ 10,500, and a number of analysts continue to fear that the CME gap of $ 9,900- $ 9,650 remains a threat.
Earlier in the day, analyst Willie Wu shared the opposite view, suggesting that the CME gap would not be closed this time.
Wu tweeted the chart above and said:
“I would say that there is a high probability that this gap on CME cannot be closed, until now it was the leader when it comes to liquidity. Pick up each drop. In that case, this will be the first CME gap on the remaining daylight. available “.
While the accuracy of the CME gap used as a technical analysis indicator is often subject to some scrutiny, Bitcoin’s inability to reverse the $ 10,500 level to support it is worrying.
Looking back from May to the end of June, we see that $ 9,900 was a reliable level of resistance, and that the recent correction in this area tested the level of support that still holds to this day.
The Volume File Visual Range (VPVR) indicator also shows buying interest at $ 9,962, which is in line with long low weeks in the previous daylight when buyers bought at a fall below $ 10,000.
The daily and 4-hour time frames show that RSI is bouncing off oversold territory and entering the 1950s, but the low purchase volume on the 4-hour chart shows that there is still a lot of work to do.
The first hopeful step is to see the end of the 4-hour candlestick or the daily closing above $ 10,500, along with a continued increase in purchase volume.
There is also a VPVR deficit of $ 10,500-11,300, so the situation could quickly escalate if the Bulls can cause a significant increase in size to $ 10,500.