Bitcoin Price Pullback: Expert Warns to Watch This CME Gap | Bitcoinist.com
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The Bitcoin price encountered a lackluster weekend, moving closer to the $95,000 threshold as traders liquidated their positions and trading volume diminished. However, a crypto analyst is now monitoring a possible upward movement as the Chicago Mercantile Exchange (CME) readies to reopen, unveiling a significant gap that could serve as a short-term attraction for price movement.
New CME Gap May Induce Bitcoin Price Surge
As the CME Bitcoin Futures market closed its session on Friday at about the $97,022 mark, Bitcoin continued to trade on platforms such as Binance, gradually declining throughout the weekend. This divergence has now produced what traders refer to as a CME gap.
According to Daan Crypto Trades, an analyst on X (formerly Twitter), these gaps have historically tended to close within 1-3 days after CME’s reopening, with rates often reverting back to the gap level. The current conditions suggest that if Bitcoin maintains a position around $95,400 as CME resumes operations, the market could soon witness a rally to fill the $1,600 gap.
This observation is reinforced by a descending trendline depicted in the analyst’s shared graph, highlighting a persistent bearish trend over the weekend. Nevertheless, the existence of a CME gap above the trendline and the attractive nature of these levels may encourage bullish engagement.
Expanding on this analysis in a recent X post, Daan Crypto Trades pointed out two significant unfilled gaps on the Bitcoin CME Futures that could impact BTC’s short-term price trajectory. The first is the previously mentioned new CME gap at $97,000 that formed over the weekend. Additionally, BTC’s price outlook is further complicated by an earlier, outstanding CME gap between $91,000 and $92,000, which has remained unfilled for nearly two weeks.
Source: Daan Crypto Trades on X
Since Bitcoin has not yet revisited this older gap, the analyst proposes that it may still apply downward pressure on the price before any significant rebound toward filling the $97,000 CME gap. Currently fluctuating around $94,248, Bitcoin finds itself positioned between these two unresolved gaps, creating a pivotal area of uncertainty in determining its near-term direction.
Analyst Confirms CME Gap Close At $97,000
In another update, Daan Crypto Trades revealed that Bitcoin is presently navigating a narrow consolidation zone as it finds itself confined between key price levels, including the Daily, Weekly, Monthly, and Yearly Opens. These thresholds, historically significant for BTC’s price actions, often serve as natural support and resistance areas, making them critical for the forthcoming substantial move.
Bitcoin’s next significant move will likely commence once it breaks out of this restricted range. Should the cryptocurrency surge above the Daily Open and prior peaks, it could aim toward $97,000 and likely close the CME gap located there. Conversely, if the price drops below the Yearly Open, it would signal bearish momentum, potentially leading to a decline toward $91,000 – $90,000.
BTC trading at $94,191 on the 1D chart | Source: BTCUSDT on Tradingview.com
Featured image from iStock, chart from Tradingview.com
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