Bitcoin (BTC) price dips and sheds nearly $500 in 24 hours, after hitting a seven-day high price of $8,405 on January 8.
The retracement has taken BTC prices below $8,000, the brief rally notably having taken the top cryptocurrency’s market value to a new high last seen in November last year.
Overnight Dip See BTC price testing support at $7,800
Coindesk’s Bitcoin Price Index shows that Bitcoin currently trades at $7,878, -5.71% lower on its 24-hour opening price of $8,377.
Optimism for another push up the market charts remains, especially after Bitcoin surged to a high of $8,405 on January 8 at 4.45 PM GMT. But mixed market sentiments have followed the heightened tensions between the U.S. and Iran following a U.S strike that killed a top Iranian commander in Iraq.
Market risk appeared to be back as safe-haven assets began to attract trader attention. But support for BTC/USD has been weak, bulls struggling to hold its price above $8k. At press time, BTC/USD has lost $477 to hit a 24-hour low of $7,855.
Geopolitical events have had an influence on the market over the last several days, a narrative that might impact Bitcoin price predictions for 2020. However, according to one analyst, Bitcoin’s price could surge above $9k on an entirely different indicator.
BTC/USD to bounce higher on “closing” CME gap
Bitcoin’s latest price surge faded within hours, suggesting that immediate support for a higher bounce would have to come from somewhere else.
In a tweet posted Thursday, crypto enthusiast and Bitcoin analyst, Michaël van de Poppe is pointing BTC/USD in the direction of CME Bitcoin futures.
According to him, the overnight price crash has filled a gap in the BTC futures prices- now at/near current BTC prices of $7,960.
“This flip would be the best + closing the CME gap.”
It’s not the first time a dip in bitcoin prices has closed a CME futures gap, but this could be special in terms of what happens next.
He notes that a potential rebound could see the BTC/USD pair jump to levels higher than yesterday’s $8,405. The “breakout,” he notes could push bitcoin’s price to a high of “$9,500 (or $11,000).” He, however, cautions that potential downward remains and prices closer to $6k could still happen.
Elsewhere, most of the altcoins are trading lower on the day, mirroring the Bitcoin (BTC) price dip. At press time, Ether (ETH) is down 3.9% at $138, while XRP/USD has lost 4% to trade at $0.20. Bitcoin Cash (BCH) is trading 2.91% lower at $236. But these coins remain some of the best to buy in 2020.
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