To a new investor entering the crypto-space sights like today’s 3.5% pump to $9,141 is enough to make you giddy with excitement about the future of cryptocurrency.
But is it that impressive? After all, Bitcoin (BTC) price was $9,300 last week, which is $200 higher than it is now. So let’s take a look at some of the factors causing, and fuelling these swings.
Daily crypto market performance. Source: Coin360.com
Bitcoin CME gap
Bitcoin price (BTC) took a dive from $9,265 and closed at $8,804.88 on Friday, November 8th, in what is becoming quite the predictable event, the CME Gap.
Last week many traders were screaming for $8,885 to be filled, and even though this is becoming quite a regular thing, world-renowned Bitcoin hater, Peter Schiff took to Twitter to call for a dump in Bitcoin price. Schiff tweeted,
“It looks like the #Bitcoin pump is finally over. Get ready for the dump!”
Of course, one only has to look at the engagement Mr. Schiff receives on his anti-Bitcoin crusade to see that he gets 14 times more interaction on his crypto tweets than he does on his dreary tweets about gold.
Outside of Schiff’s ever dreary tweets, the situation seems to be improving for Bitcoin. The CME gap has been filled so what can traders expect from Bitcoin over the coming week?
BTC USD daily chart. Source: TradingView
The Bollinger Bands indicator on Bitcoin’s daily chart shows that the price has been hovering around the moving average (MA) which is now near $8,900 since the CME gap was filled.
When the price is set so close to the middle of the indicator traders could be fooled into thinking the odds of falling to the support at $7,800 are equal to the odds of the price rising to the resistance of $10,130. Fortunately for the bulls, there are quite a few factors that suggest the price is more likely to rise over the next week rather than fall.
The first thing to consider is that the CME gap is something of an anomaly unique to the Bitcoin price action. As such, the…