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Bitcoin experienced a notable downturn, falling 2.5% and raising concerns among traders about a potential drop to fill a CME futures gap. This price action has reignited discussions about the cryptocurrency's ability to maintain its current levels, with some analysts predicting a test of the $100,000 mark.
Key Takeaways
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Bitcoin's price has dipped, approaching a significant CME futures gap.
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Low trading volume accompanies the current weakness, according to traders.
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Price forecasts suggest a potential retest of the $100,000 support level.
Bitcoin Battles CME Futures Gap
Bitcoin (BTCUSD) recently retreated to weekly lows, with market participants closely watching an unfilled "gap" in Bitcoin futures trading. Data indicates that BTCUSD fell to approximately $107,460 on Bitstamp. This 2.5% daily decline halted an early-week rebound attempt and brought the price closer to filling the gap left in the CME Group's Bitcoin futures market.
These gaps typically form over weekends when futures markets close at one price and reopen at a different level due to overnight price volatility. Historically, the market tends to "fill" these gaps by moving back into the price range between the closing and opening levels, often within a short period.
Trader Daan Crypto Trades noted the presence of a small CME gap below the current price, suggesting that while some of it has been closed, a portion remains. He also highlighted the closure of a larger gap at $110,000 from late September, which preceded Bitcoin's rally to new all-time highs.
Filling the current gap would imply a price return to around $107,390. During a market downturn last week, Bitcoin futures recorded a low near $103,750. Daan Crypto Trades emphasized the importance of the $107,000 level for bulls, stating that a sustained decline towards last Friday's low would indicate significant weakness.
Traders Eye $100,000 Support Level
Several traders are anticipating further declines, including a potential breakdown below the crucial $100,000 support level. Roman, another trader, expressed skepticism about Monday's rebound, citing a lack of validating volume. He predicted a move towards the $100,000-$98,000 range.
Crypto investor Ted Pillows echoed this sentiment, suggesting that if Bitcoin fails to establish a firm floor around the $107,000-$108,000 support, a drop to $100,000 could occur in the coming days.
Trader Crypto Tony also reiterated his expectation for Bitcoin to reach $100,000, with a possibility of falling further to $95,000.
Sources
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Bitcoin eyes CME gap below as BTC price dips 2.5% to risk $100K collapse — TradingView News, TradingView.
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