Bitcoin’s price recently bounced back after a slight dip, leaving many wondering what’s next. Let’s look at two possible scenarios for the week ahead, as outlined by market analyst KillaXBT.
Bitcoin’s Bounce and the CME Gap
Bitcoin saw a small price increase, recovering from a recent 4% drop. This bounce happened after the price touched a key support level around $115,000 – a great time to buy, according to KillaXBT. The price has since climbed to around $118,000. However, there’s a CME gap (a price gap on the Chicago Mercantile Exchange futures chart) around $117,071 that might influence the price in the short term.
Scenario 1: A Steady Climb
In KillaXBT’s first scenario, Bitcoin starts the week strong. This would lead to a higher low, possibly by briefly dropping to around $116,000 before rising again. If Bitcoin holds above this level, it could signal further price increases.
Scenario 2: A More Aggressive Move
The second scenario is more dramatic. Bitcoin would drop to around $114,800 (a previous low) before sharply reversing upwards. This would be a more aggressive move, involving a significant price drop before the recovery.
KillaXBT’s Prediction and Invalidation
KillaXBT leans towards Scenario 1, believing the price dip to $115,000 already addressed a significant price imbalance. However, if the price fails to stay above recent lows after another test, it could fall further, potentially to the $112,000-$113,800 range. As of now, Bitcoin is trading slightly above $117,900.
