- Bitcoin is currently trading at $10,300 after defending the crucial support level at $10k.
- The bounce has been quite underwhelming as bulls are having a tough time pushing the price of BTC above $10,400.
The most critical support level is $10,000, and it seems Bitcoin was able to defend it; however, the bulls’ followthrough was extremely underwhelming.
The Fear & Greed Index continues to show there is a lot of fear in the market for the past week despite the successful defense of $10k.
Is the CME gap stopping Bitcoin price from a breakout?
CME is a derivatives exchange that supports Bitcoin futures. The last gap formed by the giant digital asset was around $9,600, a gap that remains to be filled. While BTC bulls have managed to defend the $10,000 level, the interest in the CME’s gap is rising significantly. According to Google Trends, the search for ‘CME gaps’ has hit an all-time high during this month.
The uncertainty of investors can be further seen thanks to the Estimated Leverage Ratio metric provided by Cryptoquant. According to the recent report, Bybit, Binance, and BitMEX traders are notably conservative in their directional bets.
BTC/USD 4-hour chart
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Bitcoin seems to be on the verge of a breakout as the Bollinger bands are getting tighter. There is also a triangle formed on the 4-hour chart, currently favoring the bulls as BTC’s price is closer to the upper trendline.
If Bitcoin can climb above the upper trendline, upper band, and the 50-SMA, which practically coincide, bulls could quickly push the digital asset towards $11,000. On the other hand, a breakout below the area between $10,000 and $9,986, the lower band would most likely take Bitcoin down to $9,825, the last low after the crash.
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