Bitcoin’s price has retraced towards $95,000, with signs of potential upside as the CME reopens. Analyst Daan Crypto Trades highlights a new CME gap at $97,000 and an unfilled gap at $91,000-$92,000. Bitcoin may see an uptick if it surpasses key resistance levels, but risks downward movements if it falls below the Yearly Open.
The Bitcoin price has seen a slow down recently, inching closer to the $95,000 mark this past weekend. Traders appear to have closed out their positions, leaving trading volumes low. However, one crypto analyst suggests that there may be a potential upward shift as the Chicago Mercantile Exchange (CME) prepares to resume trading. A noteworthy gap has opened, which could attract price movements in the near term.
The CME Bitcoin Futures market, which closed last Friday around $97,022, left Bitcoin trading on exchanges like Binance to continue its decline throughout the weekend, creating what’s known as a CME gap. Daan Crypto Trades, an analyst on X (the platform formerly known as Twitter), points out that such gaps historically tend to fill within 1 to 3 days after the CME reopens. If Bitcoin can maintain levels around $95,400 when trading resumes, there’s a chance the price could rebound to fill the gap of $1,600.
Daan emphasized a descending trendline on his shared analysis, showcasing the bearish momentum that prevailed over the weekend. Yet, the introduction of the CME gap could entice buyers to step in and reverse the downward trend. In a follow-up post, he identified two main unfilled gaps on the CME Futures chart that could sway Bitcoin’s short-term direction. The newly created gap at $97,000 is notable but is complicated by an older gap between $91,000 and $92,000 that has been unaddressed for nearly two weeks.
According to the analyst, because Bitcoin has yet to revisit the older gap, it may still apply further downward pressure on prices. Currently, Bitcoin sits at about $94,248, creating a tricky intersection between these two unfilled gaps. This scenario of conflicting signals is crucial in determining the next steps for Bitcoin’s price movement.
In another post, Daan Crypto Trades addressed how Bitcoin is currently trapped in a consolidation phase. It’s caught between many key price levels, which include Daily, Weekly, Monthly, and Yearly Opens. These levels have traditionally acted as strong support and resistance zones; thus, they hold significant importance for future price trajectories.
The next big shift for Bitcoin could hinge on whether it breaks free from its current tight range. A move above the Daily Open and previous highs might propel the cryptocurrency toward $97,000, likely leading to the closure of the outstanding CME gap. Conversely, if Bitcoin falls below the Yearly Open, that would signal bearish trends, likely pushing prices down towards $91,000 or even $90,000.
