Bitcoin price is down at spot rates but one BTC analyst expects prices to rebound, reclaiming $64,000 and closing the CME Gap.
It is not always an “up” year for Bitcoin and quite literally every tradable asset in this world.
After impressive gains in Q1 2024, the coin broke above $70,000, rallying to register fresh all-time highs.
The broader trading community remains optimistic about the future, expecting prices to eventually turn higher and rally post-Halving.
Before this, traders and holders have to endure pain.
I don't see how Mt. Gox will not weigh down on prices short-term. This unlocks liquidity for people with massive gains at current or even much lower prices.
— marcosv.eth (@marcmynome) June 24, 2024
Bitcoin Price Free Falling, CME Gap Not Yet Filled
For now, Bitcoin is under pressure, extending its downward spiral and defying short-term recovery predictions from some hopeful analysts. As things stand, the coin is down 15% from all-time highs and printing worrying lower lows, looking at the candlestick arrangement in the daily chart.
(BTCUSDT)
Examining price action on the daily chart, it is clear that the downward momentum is strong. Bear bars are banding along the lower BB. At the same time, the lower BB is diverging from the 20-day moving average, the middle BB. This suggests that price volatility is high.
While the path of least resistance currently favors bears, a potential bounce could be forming.
Taking to X, one analyst has picked out an “unfilled CME gap” on the daily chart. One must know the details behind this gap.
Since BTC futures are also listed on a centralized bourse, the CME, a gap could form since trading on this regulated platform stops on Friday and opens on Sunday.
The problem is that BTC is decentralized, and trading continues every day of the week, including weekends, albeit mostly with thin liquidity.
Historically, these “gaps” tend to “fill” as the price moves back to the level where the gap occurred.
The gap was formed at around $64,000.
Therefore, if history guides us, prices will highly likely rebound from spot rates toward $64,000, filling the gap and creating market equilibrium.
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Will The Capitulation Below $60,000 Allow Long-Term Holders To Double Down?
Besides this, another analyst said the max pain for long traders or buyers is around the $60,400 and $61,800 zone.
If there is a break of $60,000, longs will likely capitulate, an opportunity for long-term holders to double down, riding the leg up.
This preview might make sense now.
While there is no precise prediction on where BTC will be trading in the sessions ahead, macro factors might help give a rough estimate.
Ahead of the November presidential election, global liquidity is surging, a net positive for BTC.
Moreover, considering the Bitcoin Halving on April 20, there could be more room for BTC to grow in the months ahead.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
