Bitcoin has seen mixed price action in recent times, struggling to surmount $10,000 despite gaining a solid foothold within the $9,000 region
Analysts are now noting that the cryptocurrency appears to be at a turning point as it trades directly between two CME gaps
One analyst is also pointing to the massive BTC premium seen on the CME as a reason why the crypto is highly bullish
Bitcoin saw some turbulent trading yesterday when sellers pushed it to lows of $9,300 before buyers stepped up and catalyzed a movement up to over $9,600.
This choppy price action came about just prior to Bitcoin’s weekly and monthly candle close, and analysts have noted that its ability to close above $9,500 is an overtly bullish sign.
It is important to note that the cryptocurrency now appears to be growing increasingly bullish as it hovers within the mid-$9,000 region.
One analyst is pointing to the fact that Bitcoin’s price on the CME is currently $100 higher than its spot price.
He believes that this indicates that the crypto is bullish at the moment, as futures traders on the platform are willing to pay a premium to have exposure to it.
Bitcoin Consolidates as CME Price Spread Points to Further Upside
At the time of writing, Bitcoin is trading down marginally at its current price of $9,560. This marks a slight climb from daily lows of $9,300 that were set yesterday evening.
As the crypto consolidates within the mid-$9,000 region, analysts are now closely watching to see how it responds to the heavy resistance that it faces around $10,000.
It has been rejected at this price level on multiple occasions, and an inability for it to firmly surmount it in the near-term would be a grim sign.
One factor that could signal upside is imminent for the cryptocurrency is the fact that there is currently a positive price spread between Bitcoin’s price and its CME futures price.
Analysts do believe this is a bull-favoring sign.
“BTC – (CME) futures trading almost $100 above spot Bitcoin price, that’s very bullish, the wider the spread the more bullish the market until it flips,” one analyst noted.
Which Price Level Might BTC Target Next?
As for where Bitcoin may go next, the same analyst also noted that the cryptocurrency’s CME futures gaps may offer investors with some insight.
Although these gaps by no means have to be filled, they are statistically very likely to be filled at some point in the future.
Currently, BTC is trading squarely between two of these gaps, which sit at $7,650 and $11,715 respectively.
“BTC (CME) small gap up on the weekly open. These are the gaps in the 4hr chart that are in need of filling,” the trader said while pointing to the below chart.
Image Courtesy of Big Chonis
Because the price premium on the CME is alluding to underlying bullishness, BTC may move to fill its gap at $11,715 first.
Featured image from Shutterstock.