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Markets Report: Bitcoin is bullish with ‘any daily close’ above $10,500, says trader

A CME gap at $9,600 may not need to be filled after all, says Josh Rager, while another corporate buy-in boosts bullish sentiment.

Bitcoin still has the potential to reach new all-time highs—and will avoid testing four figures if one price area holds.

That was the opinion of one analyst on August 25 as BTC/USD continued its ranging price action between $11,000 and $12,000.

Exemplifying the mood among market commentators, Michaël van de Poppe argued that the area between $11,200 and $11,400 must hold in order to avoid further losses.

“If we lose that zone, I think we’ll be going towards $10,000,” he told Twitter followers on Tuesday.

BTC bulls still in control above $10,500

Van de Poppe has maintained his advice in recent days as Bitcoin tracks sideways without any noticeable direction. 

Following its slide from highs of $12,500 last week, the $11,000 corridor has remained in play, with simple up or down moves of a few hundred dollars characterizing trading.

As Modern Consensus reported, the area immediately below $10,000 contains a so-called “gap” in Bitcoin futures markets, something which has historically proven attractive for spot price trajectory. 

Van de Poppe himself confirmed that he would look for buy-in opportunities just below the gap at a minimum of $9,600 should losses accelerate.

For fellow trader Josh Rager, even if the gap remains untouched, selling pressure is still more likely than not.

“CME Gap meme continues to be unexplored – but doesn’t have to fill,” he tweeted. 

“But expect some nice downwards wicks to come – even though any daily close above $10,500 remains bullish (in my opinion).”

Bitcoin is still rangebound, with $11,200 the key level for bulls. (Source: CoinMarketCap)

Snappa adopts Bitcoin as a reserve asset

Expectations continue to run high that a speech from the US Federal Reserve on Thursday will provide clear direction for macro as a whole, with Bitcoin reacting as a result. 

Inflation is tipped to rise, as equity markets see records just months after the coronavirus-induced crash in March.

Regardless, signs abound that bigger-volume investors are increasingly eyeing Bitcoin as a serious hedge against monetary policy. 

Following MicroStrategy at the end of July, another company in the form of online graphics firm Snappa has confirmed it has adopted Bitcoin as a reserve asset.

“Would you rather save money in a currency whose supply is inflating each year? Or would you rather save in a currency whose terminal supply is programmatically fixed?” co-founder Christopher Grimmer said about the decision in an accompanying blog post.

While Snappa did not mention how much BTC it had purchased on the back of the decision, the news was warmly received by some of Bitcoin’s best-known names.

In particular, quant analyst PlanB hinted that this spoke to Bitcoin becoming the major asset with a price in excess of $288,000 that his stock-to-flow model has predicted.

Snappa highlighted Stock-to-Flow as a key component in its decision to adopt Bitcoin. (Photo: Digitalik)

Alarming data on US money velocity, which hit all-time lows in Q2 2020, led him to the same conclusion. Money velocity, a measure of how quickly cash is flowing around the economy, has all but evaporated, leading another analyst to warn that there is now “too much money” in circulation.

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Anthony Bevan is a journalist focusing on disruptive finance and cryptocurrency, along with the changing face of the market as Bitcoin gains mainstream adoption. Journalists covering cryptocurrency for Modern Consensus May hold positions in some of the currencies they write about.