After a short period of consolidation, Bitcoin (BTC) broke down and has dropped below the key support level of $11,000 that has previously been a strong region of buying pressure for the cryptocurrency.
Now, analysts are noting that the drop may continue on until Bitcoin fills its CME futures gap that currently exists in the low-$8,000 region, which may mean that embattled investors will face another 30% drop before the crypto reverses its downtrend and begins climbing higher.
Over a one-week period, it is abundantly clear that today’s drop marks an extension of the downwards momentum that BTC first incurred when it dropped from weekly highs of over $12,000.
Importantly, $12,000 has proven to be a strong level of resistance for Bitcoin, as it has faced violent rejections with each attempt to decisively break above this price level.
Now, analysts are noting that it is highly probable that the cryptocurrency dips lower in the near future, as Mitoshi Kaku, a popular crypto analyst on Twitter, explained in a recent tweet that $10,600 is BTC’s next key level of support.
Bitcoin Drops Below $11,000 as Selling Pressure Builds
At the time of writing, Bitcoin is trading down nearly 4% at its of $10,980, which is down significantly from its 24-hour highs of over $11,400.
“On the macro level (1W) I’m looking at two main levels $10.6 and $10.1 — Lose those levels and $8.6K is almost guaranteed imo! Between 10/28 & 11/11,” he noted.
On the macro level (1W) I'm looking at two main levels $10.6 and $10.1 — Loose those levels and $8.6K is almost guaranteed imo! Between 10/28 & 11/11 . — Joe Mitoshi 🧑🚀 (@CryptoSays)
Will BTC Soon Fill It’s CME Future Gap?
Notably, Bitcoin currently has two gaps on its CME Futures chart, with one existing at $11,800 and one at $8,400. Historically, it is incredibly rare for BTC to not fill these gaps, which means that it is highly likely that these two levels will be touched by the crypto in the near-future.
The Cryptomist, another popular crypto analyst on Twitter, spoke about this in a recent tweet, noting that she believes both of the aforementioned gaps will soon be filled.“$Btc: 10890 gap almost filled. 2 more gaps need to be filled – 11.8k – 8.4k. Do not be mistaken, both will be filled,” she explained while pointing to the below chart.
1089 gap almost filled2 more gaps need to be filled
Do not be mistaken, both will be filled. — The Cryptomist (@Thecryptomist)
– 11.8k
– 8.4k
As the day continues on and Bitcoin responds to its drop below $11,000, it is highly likely that analysts will soon gain a greater idea of which of the above gaps will be filled first.
Featured image from Shutterstock.
