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According to Van de Poppe, the two gaps for BTC are at $9,700 and $10,600, and the further events will depend on which one will be reached first.
After a pullback on Thursday and Friday, markets have recovered, with major tech stocks rebounding and crypto-assets strengthening. Bitcoin (BTC) was dithering around $10,000 last Tuesday and over the last seven days, it is 11.39% down. Some are afraid there is a risk of a further drop. However, Cointelegraph Markets analyst Michaël van de Poppe says that with the current macro trends, Bitcoin may significantly enhance its position and receive a fresh boost, with BTC/USD growing stronger.
The analyst wrote:
Futures bounce back significantly in the U.S.
Europe also bouncing back up.
Might signal a slight relief on $BTC as well towards the area of $10,600-10,800.
— Crypto Michaël (@CryptoMichNL) September 9, 2020
As Michaël van de Poppe pointed out, Bitcoin has faced challenging times. A couple of days ago, he described two possible scenarios for BTC price action. According to Van de Poppe, the two gaps for BTC are at $9,700 and $10,600, and the further events will depend on which one will be reached first. So far, BTC/USD has failed to climb above $10,400.
Couldn't really hold the $10,000 level (or it's dipping beneath).
The second scenario would be a closing of the CME gap, after which closing of the upper CME gap is next.
$9,600-9,800 could be bottom level for now. pic.twitter.com/8MXdwYtw11
— Crypto Michaël (@CryptoMichNL) September 7, 2020
Nigel Green, CEO of deVere, is also optimistic about the Bitcoin price boost. He said:
“Crypto cynics and finance traditionalists will use the current — and temporary — fall in Bitcoin as an excuse to knock its inherent strengths to fit their own agendas. However, the reality is that the case for Bitcoin to break out this year is stronger than ever”.
Besides, Green said that a plunge below $10,000 will serve as a buying opportunity for investors.
“The fundamentals that make Bitcoin an attractive investment are, in fact, gaining strength”.
Mati Greenspan, the founder of Quantum Economics, agreed:
“The crypto market has broken a few psychological levels. When we broke above that level in late July, it was with such force that we never really got to test it as support. Well, this may just be our chance … if things get really bad we may just get another chance to buy bitcoin below $10,000.”
BTC/USD at Lowest Since July
Last week, Bitcoin plummeted 15%. On September 7, the BTC/USD correlation reached the lowest point since July. Analysts say that with the new Federal Reserve inflation policy and money printing, its strength will be seriously undermined. As Bitcoin critic and gold advocate Peter Schiff has stated, the coin’s correction to $10,000 marks its entry to the bear market. However, he admitted he was wrong about Bitcoin previously, as the crypto performed opposite to his expectations.
According to forex broker FxPro, the U.S. dollar must hit much higher levels against major currencies like the euro, pound sterling, and Swiss franc — to pull out of its breakdown.
“Without accelerated growth of the Dollar and the above levels being reached, we remain within the weakening pattern with short corrections”.
At the moment of writing, Bitcoin is trading at $10,254.79.