- Bitcoin is trending sideways after yesterday’s price drop of more than $1,500 to $10,500.
- Analysts expect a further consolidation along the $11,000 mark without a further correction following.
- At the $11,900 mark, a CME gap has formed that Bitcoin could close in the near future.
Yesterday Bitcoin managed to break through the $12,000 mark, but after a short time it fell by $1,500 within a few minutes to a temporary $10,500. At the time of writing, however, the Bitcoin price has stabilized along the $11,000 mark and now trades at $11,222.21. The market capitalization has fallen from $214 billion to $208 billion.
Analysts agree that investors should not panic after yesterday’s price drop. Experienced Bitcoin trader Josh Rager describes that the recent correction is only 15% and that in the past corrections of up to 30% have been seen in just one day after such bull runs.
“HornHairs” also states on Twitter that the Fear & Greed Index has risen sharply in recent days due to the current price developments of Bitcoin and the crypto market. In his opinion, the current situation should not be used to take profits too quickly, as Bitcoin must first show a clear trend in order to make an informed trading decision. He does not think that the price will continue to fall in the next few hours.
Another interesting but also controversial development was observed by “Big Chonis Trading”. At the Chicago Mercantile Exchange (CME), another “gap” appeared at the weekend, as the platform was closed as usual on the weekend. These so-called CME gaps occur when the closing price on Friday reaches a significantly different value than the opening price on Monday.
This weekend, a gap at the level of $11,900 has been created that Bitcoin could close in the next hours or days. This technical indicator is controversial in the Bitcoin community, but is considered another tool to predict price movements. Whether Bitcoin will actually fill the CME gap remains to be seen.
Grayscale continues to buy BTC, ETH and XRP
As Crypto News Flash already reported, Grayscale has bought three times the amount of new BTC since Bitcoin Halving than was produced in the same period. In addition to Bitcoin and Ethereum, the latest overview of the trust shows that Grayscale has bought twice the amount of XRP within a week, thus betting on a possible rising XRP price. In total, the company holds cryptocurrencies worth $5.2 billion.