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bitcoin

Bitcoin Forms Major CME Gap In Volatile Weekend Price Action, Analysts Discuss

Ash Tiwari
by Ash Tiwari
6 months ago
·
Posted in Bitcoin News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Although Bitcoin (BTC) managed to recover most of its losses over the weekend after tumbling as low as $78,258 on February 28, the premier cryptocurrency has created a massive new Chicago Mercantile Exchange (CME) gap, raising concerns that the digital asset may witness another pullback to the low $80,000 level.

Bitcoin Not Out Of The Woods Yet

According to an X post by crypto analyst Rekt Capital, BTC filled two key CME gaps over the weekend – one between $78,000 and $80,700, and another between $92,800 and $94,000. The wide range of prices reflects the extreme volatility witnessed by the top cryptocurrency over the weekend.

Related Reading: Is Bitcoin Showing Another False Downside Deviation? Analyst Weighs In

As a result of this volatile price action, BTC has now created a new, massive CME gap between $84,650 and $93,300. Rekt Capital added that while the bottom may have been reached at $78,258 during the downside deviation, it does not necessarily mean that BTC won’t revisit that price level.

rekt
Source: Rekt Capital on X

For the uninitiated, a Bitcoin CME gap is the price difference between Bitcoin’s closing price on the CME futures market and its opening price the next day, created because the CME closes over the weekend while the spot market continues to trade. Past data indicates that CME gaps often work as price magnets.

That said, even if BTC hits the lower end of the latest CME gap at $84,650, it would still constitute a higher low relative to Friday’s low of $78,258. Rekt Capital concluded by saying that as long as BTC holds the macro support at $93,500, “any short-term downside volatility will only present opportunities.”

Fellow crypto trader Merlijn The Trader remarked that “volatility is about to go parabolic” following the creation of the new massive CME gap. According to data from Coinglass, heightened price volatility has already led to liquidations worth over $900 million in the past 24 hours.

Another crypto analyst, Will, noted that the general sentiment around BTC is too euphoric for a retest of a previous accumulation range. The analyst added that they are eyeing the mid $70,000 range to accumulate BTC.

will
Source: Will on X

Analyst Suggests More Downside For BTC

While BTC currently trades close to the $90,000 level, analysts believe that the top digital currency by market cap could slip to $74,700. Crypto analyst Ali Martinez recently highlighted that historically, BTC tends to rebound from long-term support levels, which currently sit in the mid $70,000 range.

Related Reading: Financial Conditions Signal Bitcoin’s Next Move — Is A Rebound Incoming?

In related news, Coinbase analysts remarked that BTC’s price is struggling due to the absence of any major near-term positive catalysts. In particular, the recent Bybit hack and heightened macroeconomic uncertainties are likely contributing to BTC’s woes.

On a positive note, spot Bitcoin exchange-traded funds (ETFs) are finally starting to see net inflows once again. At press time, BTC is trading at $90,170, down 1.5% in the past 24 hours.

bitcoin
BTC trades at $90,170 on the daily chart | Source: BTCUSDT on TradingView.com
Featured Image from Unsplash.com, Charts from X and TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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