It’s been a relatively odd week for bitcoin, the world’s number one digital currency by market cap. At the time of writing, the asset is currently trading for just over $11,500, which is a few hundred more than where it stood just 48 or 72 hours ago.
Will Bitcoin Go Up or Down?
The currency has been in an up-and-down pattern over the last few days. While this isn’t necessarily a bad thing, it also shows that bitcoin’s resilience is not exactly where we thought it was prior. Before, the currency was striving to shoot beyond the $12,000 mark, and while this goal was accomplished, the feat was achieved for what only felt like seconds. Bitcoin rose as high as $12,400 before ultimately losing as much as $1,200 and falling as low as $11,200 during the earlier portion of the week.
To be fair, a lot of things happened to make the ground bitcoin was standing on relatively shaky, so the fact that things weren’t any worse is certainly a positive note to take down in our thank you journals. For one thing, it was announced just days ago by Federal Reserve chair Jerome Powell that the United States was going to permit inflation to rise above the standard two percent margin that has long been a “given” in these circumstances. This got a lot of people worried about the economic conditions we would face in the future, and bitcoin encountered a bit of a drop after the news was announced.
Now that things have “subsided” a bit, it looks like bitcoin is again returning (or at least trying to return) to form. However, the big question now is whether the asset will potentially put $12K in its sights once again, or if it’s planning to take another mega stumble as some analysts seem to predict will happen. Once source is suggesting that bitcoin could fall to as low as $9,600 or lower in the coming weeks given that there is a large batch of bitcoin futures that are set to expire.
Filling the Gap
In addition, there is a gap every Monday considering that futures are not traded on weekends, and the source in question suggests that the CME gap for mid-July was at $9,600, which means the currency could potentially fall to this level to fill this gap. Initially, this space stood at a whopping $16,000 for roughly four years, and the massive drop in this price could potentially send BTC into an ugly – and bearish – whirlwind.
At first glance, however, it’s hard to assume that bitcoin will simply fall into such a low level considering how strong it’s been in managing to remain above $11,000 for as long as it has. Perhaps the currency is not ready to give up against present resistance levels so quickly.