Bitcoin Price Declines Below $90K Amid CME Gap Closure and Market Speculation
Bitcoin’s price has dipped below $90,000 after closing a significant $10,000 CME gap, with selling pressure persisting. An unfilled CME gap at $78,000 is viewed as critical support. Current market conditions exhibit high volatility, alongside speculation regarding a potential zero capital gains tax on cryptocurrencies which may influence future price actions.
Bitcoin’s recent price movement has seen it drop below $90,000 after closing a significant $10,000 CME gap. Strong selling pressure has caused worries among investors regarding the sustainability of recent gains. Notably, a remaining unfilled CME gap at $78,000 is now viewed as a crucial support level that Bitcoin might test again before resuming an upward trajectory.
The closure of the $10,000 CME gap was abrupt for futures on the CME exchange, a phenomenon that occurs due to price jumps when markets reopen after weekends. Market analyst MerlijnTrader noted that while Bitcoin has filled this major gap, traders are focusing on the $78,000 level. This unfilled gap is expected to serve as a crucial support if Bitcoin continues to experience downward pressure.
Currently priced around $83,606, Bitcoin has seen a decline of over 3% in the last 24 hours, amid strong selling activity reflected by large red candles on price charts. A detected double top bearish pattern suggests a further decline may occur. Moreover, the Relative Strength Index (RSI) at 36 indicates oversold conditions in the market, along with negative CVD data suggesting that traders are pulling out.
Bitcoin’s future price trajectory will heavily depend on its ability to hold key support levels. The $80,000 mark serves as psychological support, while the unfilled CME gap at $78,000 represents a crucial area that, if breached, may lead Bitcoin toward the $75,000 zone. Conversely, a reclaiming of the $85,000-$87,000 range would be necessary for a bullish reversal and a potential recovery above $90,000.
Speculation in the market has also increased due to rumors regarding a proposed reduction of capital gains tax on cryptocurrencies to zero by former President Donald Trump. Influencer Nick O’Neil highlighted this speculation based on hints from Eric Trump and David Bailey, which may be revealed at an upcoming summit. Should such a tax policy be implemented, it could spur another Bitcoin rally akin to the previous surge beyond $100,000.
In summary, Bitcoin has recently encountered significant selling pressure and closed a notable CME gap. Investors are now closely monitoring the $78,000 support level, as it may influence future price movements. Speculations regarding potential tax policy changes may add further volatility to the market, providing both risks and opportunities for traders. Therefore, the outlook for Bitcoin remains heavily contingent upon market dynamics and investor sentiment.
Original Source: themarketperiodical.com
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