Bitcoin’s Price Dip Linked to CME Gap Closure, Analysts Remain Hopeful

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Bitcoin witnessed a disappointing setback today as its price plummeted to the day’s low of $59,604, four percent less than its previous value. Influential crypto analysts indicate that this unsettling trend largely resulted from an anomaly known as the Chicago Mercantile Exchange (CME) gap, a crucial aspect in Bitcoin futures trading.

The term CME gap refers to the price void that appears on the Bitcoin CME futures chart. Unlike Bitcoin’s round-the-clock spot markets, the Bitcoin futures market at CME operates solely five days a week, shutting down over weekends and holidays. This variance in operational hours occasionally triggers a discrepancy in prices, as observed between the last quote on Friday and the opening rate on Monday.

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A connection has been drawn between this fall in Bitcoin’s price and the closure of a CME gap. Over the past weekend, a remarkable gap was detected, which was confirmed by Daan Crypto Trades (@DaanCrypto), a respected trader and analyst. He indicated that Bitcoin had neutralized most of the gap generated over the weekend, and by Monday, it had also settled the gap created a week before.

This sentiment was echoed by fellow market players as well. Titan of Crypto (@Washigorira), for instance, pointed to the bullish potential post-gap closure. The standpoint here is that the completion of the gap could eliminate hindrances to the Bitcoin’s price, thereby possibly commencing an increase.

Crypto analyst Ninja (@Ninjascalp) reaffirmed the same, asserting that these were just the CME gap filling repercussions. In his words, there is no cause for panic. Yet another analyst pitched in, ruling that market makers govern the BTC market in the short term. They further stated that a $1,650 CME gap from the weekend was never going to be left open.

Assessing the situation, Marco Johanning offered a more balanced perspective drawing attention to the volatility of the current price level. According to him, Bitcoin can now surge from the local support it has found, following the closing of the CME gap. However, the current level is precarious and if the support crumbles, another fall of 1k-2k could be expected.

As for future speculations, an in-depth study by the analysts from Alpha dōjō (@alphadojo_net) highlighted critical levels that traders should keep an eye on. Their verdict was that unless Bitcoin sways below $60,000 or beyond $63,500, it would be preferable to patiently wait for a resolute trend.

Moreover, they emphasized on a large liquidity pool around the $60,000 mark which might act as support, but also indicated toward a strong selling force above this level at $64,000, potentially inhibiting any upward ascents.

At the time of this report, Bitcoin traded at a somewhat comforting $60,388.