Bitcoin’s price is now trading firmly above $16,000. This marks a notable technical breakout that could indicate significantly further upside is imminent in the near-term.
This level has long been holding strong as resistance, with the selling pressure here catalyzing multiple potent rejections throughout the past few days and weeks. If buyers can flip this level into support, it could open the gates for significantly further upside.
It does appear that this level is becoming support for the cryptocurrency, as buyers are growing aggressive each time the price drifts back towards this level.
Whether or not Bitcoin can hold above this level before a high time frame close – like today’s daily candle – will offer significant insight into its mid-term significance.
One trend that does seem to be boding well for Bitcoin is the premium seen while looking towards the digital asset’s price on the CME.
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The fact that BTC is trading at a higher price here than it is on spot exchanges signals that so-called “smart money” is frenzied to gain long exposure to Bitcoin.
This is undoubtedly a bullish trend.
Bitcoin Shatters $16,000 as Analysts Eye Further Upside
At the time of writing, Bitcoin is trading up just under 3% at its current price of $16,100. This is around the price at which it has been trading throughout the morning, with bulls attempting to form some strong support around $16,000.
Throughout the past week, the selling pressure here had proven to be quite significant.
The break above this level today, however, put a firm end to this selling pressure and has now opened the gates for the cryptocurrency to see significantly further upwards momentum.
BTC Price Premium on the CME Signals Upside Could be Imminent
One indicator of Bitcoin’s present upside potential is the premium it has been trading on the CME.
While spot BTC on major exchanges was still trading below $16,000, it was already well past this level on the CME and is maintaining its premium at the present moment.
“CME crosses $16000 $BTC. Over the past few months, CME futures consistently maintained premium over the spot markets. OI goes head-to-head with Binance,” one data aggregator noted.
Image Courtesy of Unfolded. Data from Skew.
This signifies that big buyers are bullish on the cryptocurrency and are willing to pay a hefty premium for it. This may indicate that further upside is imminent.
Featured image from Unsplash. Price data from TradingView.