Over the weekend, Bitcoin surged and surpassed the psychological $10K level. The strong uptrend made some commentators say that a new all-time high is possible before the end of the year. However, on February 10, Bitcoin dropped back below $10,000, and abrupt volatility saw the markets abandon five figures barely a day after reaching them.
Data from Coin360 revealed that BTC/USD dipped to lows of $9,850, but currently, a recovery has ensued, and it is trading around $9,900. A bounce-back followed the dip up to $10,000, and the following fluctuations have seen the token hover in the $9,900 range.
‘Small’ Dip Fills CME Future Gap
That move coincided with the start of a new trading week on the futures market with BTC filling a ‘gap’ that was left at the end of trading on February 7. Mainly, CME Group’s futures finished last week at around $9,850. That is the same level that Bitcoin fell to on January 10, suggesting that it could be a new support zone.
The rise and fall appeared to hit empty patches in the futures market. This phenomenon is typical for Bitcoin, with analysts noting various instances in the past year that have dictated short-term market movements.
With the price plunging to $9,900, one buyer on the derivatives giant BitMEX bought over $2 million of BTC in a single transaction, as highlighted by the data from monitoring resource WhaleTrades.
An in-depth analysis of this situation shows that in spite of losing $10,000 support, the extent of the most recent losses was quite notable for its insignificant size. One analyst summarized:
“This was a fairly mild dip. A backtest of the weekend breakout and the CME gap was a high probability. The question is if we can quickly reclaim 10k or need to test lower.”
The general mood nevertheless seemed buoyant in the wake of alleged gap fill. That is the case with CME futures already trading above $10,000 per BTC once more moments afterward. The futures saw local highs of $10,350 overnight on February 9, which is their best since mid-September 2019.