Bitcoin Price Could Rally to $9K Before a Massive Collapse, Here's Why

Bitcoin price has been in a sidewards range for several weeks now, with some people on team bear calling for fresh lows in the region of $3,000 while the bulls have been calling for astronomical all-time highs soon.

The CME gapWhether you are leverage trading, or simply moving your Bitcoin into a stablecoin during the dips, if you are not capitalizing on the weekly CME gap, you're missing a trick.

So while the bankers may sleep, Bitcoin does not sleep, and this could open up a window for a short-term rally before the bear cycle resumes.

This has given some hope of a relief rally before the real pain begins for Bitcoin.

Using Bollinger Bands Indicator overlayed with my indicator that shows pivot points based on momentum, Bitcoin appears to have entered a short-term bull phase that will most likely see a rejection around the moving average of $9,000.

This is where Bitcoin price experienced an unnatural pump, which saw the digital asset climb around $2,500 in 48 hours, and despite a momentary wick above the MA, it failed to hold above this point and soon resumed its bear trend, feeding off the blood of hodlers at the bottom of the BB.As such, with the institutional players easing up over the holiday period, it's a perfect opportunity for the price of Bitcoin to be pushed up to around this level.

You only have to look at the end of 2018 and the beginning or 2019 where Bitcoin held an average price of $4,000 to see why the RSI is a valid indicator for buying Bitcoin, as buying in the oversold territory would have seen you gain over 300% on your investment throughout 2018.

As Bitcoin continues to stay in a sidewards range, the inevitability of an extinction-level event that will cause even the die-hard Bitcoin maximalists to question why they HODL lines of code, looks more and more likely.

The support on the Bollinger Bands is currently $2,550 and whilst Bitcoin has never actually touched the support on the monthly BB, that's not to say it won't have a good run towards it should $7,010 fail to hold in the short term.

Should it continue to fall, the Bitcoin price only needs to fall a further $150 before it finds itself at the support of $7,010.