The Bitcoin market has experienced a slight 0.67% surge in its price over the past 24 hours, returning briefly to the $118,000 zone. This minor uptick is part of a recovery noticed over the last two days, which followed a notable 4% price drop earlier in the week. As we step into a new week, distinguished market analyst KillaXBT has outlined two potential price development scenarios for the leading cryptocurrency.
In a recent post on July 26, KillaXBT offered a detailed technical analysis of the Bitcoin market to predict its possible future trajectory. The well-respected analyst pointed out that Bitcoin saw a price bounce after falling into a critical demand zone around the $115,000 mark, which is also referred to as an optimal long entry point.
Since then, the digital currency leader has risen to $118,000 after this price recovery. However, KillaXBT mentions the presence of a CME Gap at approximately $117,071, which may act as a price magnet in the near future. It’s worth noting that CME gaps are price voids on the Chicago Mercantile Exchange’s (CME) Bitcoin futures chart. These typically occur when Bitcoin’s price significantly fluctuates on the spot market while CME markets are closed, often over the weekend.
Looking towards the upcoming week, KillaXBT explains the first scenario where the Bitcoin market opens on a bullish note. Here, the analyst suggests investors could anticipate Bitcoin to form a higher low, possibly through a liquidity sweep around the $116,000 mark. If Bitcoin bulls successfully maintain this price range, it could initiate new long setups with stop losses set beneath the previous week’s low.
In the second scenario, KillaXBT describes a more assertive situation where Bitcoin performs a double sweep of the previous week’s wick low around $114,800. This would result in a ruthless liquidity grab prior to an upward reversal. Nevertheless, the market expert leans towards the likelihood of the first scenario, given the earlier liquidity grab with the price dip to $115,000.
KillaXBT also discusses certain factors that could nullify the chances of a bullish reversal. Specifically, if the price fails to remain above the recent wick lows after a retest, it could push Bitcoin prices to deeper imbalance zones between $112,000 – $113,800.
As of now, Bitcoin is trading at $117,900, indicating a slight 0.21% increase over the past week.
