Bitcoin’s price has plummeted to as low as $58,000 in the past 24 hours, failing to maintain support above $60,000. Analysts are attributing this decline to the CME gap, suggesting that Bitcoin may experience a relief bounce in the near future.
Crypto analyst Daan Crypto suggested that Bitcoin’s recent price drop was to close the CME gap around the $60,000 range. The CME gap refers to the difference in Bitcoin’s price on the Chicago Mercantile Exchange (CME) futures market between market closure on Friday and reopening on Monday.
Speed Racer, another analyst, also pointed to the CME gap as the reason for Bitcoin’s decline. He mentioned that market makers were manipulating the BTC market in the short term to avoid leaving a $1650 gap from the weekend.
Ninja, a crypto analyst, echoed similar sentiments, calling the recent price drop a result of the CME gap and labeling it as “bullish selling.” Despite acknowledging the current market conditions as panic-inducing, he reassured Bitcoin bulls of an impending market rebound.
Fortunately, the CME gap has been closed, according to Daan Crypto, indicating a potential relief bounce for Bitcoin. Crypto expert Michael van de Poppe confirmed the closure of the CME gap and predicted an upward trend for BTC.
Titan of Crypto shared a positive outlook, stating that nothing was holding Bitcoin back now that the CME gap had been filled. He anticipated a rise in Bitcoin’s price to $72,000 in the near future.
While the closure of the CME gap is a positive development, other factors contribute to Bitcoin’s price decline. Selling pressure on Bitcoin, particularly from Spot Bitcoin ETFs, remains a concern. Data from Farside Investors shows significant net outflows from these ETFs, leading fund issuers to offload their BTC holdings.
Additionally, the German government’s selling of Bitcoin holdings and concerns about Mt. Gox’s repayment of $9 billion in crypto to creditors add to the selling pressure on Bitcoin. These factors, combined with the closure of the CME gap, contribute to Bitcoin’s current price volatility.
As of the time of writing, Bitcoin is trading at around $58,600, reflecting a 3% decline in the last 24 hours. Despite these challenges, analysts remain optimistic about Bitcoin’s potential for a rebound in the near future.
In conclusion, while the closure of the CME gap offers some relief for Bitcoin, other factors such as selling pressure from various sources continue to impact its price. However, analysts remain hopeful that Bitcoin will bounce back from its current price level and potentially reach new highs in the future.
