Bitcoin begins the week on a bearish note, as market analysts closely monitor the possibility of closing an important CME futures gap. This gap, formed between $85,510 and $86,800, has drawn significant attention as traders assess its implications for upcoming price movements.
While the broader trend remains relatively stable, the short-term chart has become a focal point. Bitcoin is currently trading within a narrow range and is testing key support levels, indicating that its future direction could hinge on this area.
The CME gap in question has mostly been filled, but a portion remains open. Historically, Bitcoin has a tendency to revisit these unfilled areas, and signs suggest the market may be drifting toward this level. Although spot prices can diverge from futures, they often trend in the same direction. Therefore, it is possible BTC could dip slightly lower before attempting a recovery.
Last weekend”s recovery bounce for Bitcoin encountered resistance quickly. Typically, a strong upward movement indicates bullish sentiment, but the recent price action has been characterized by choppy and overlapping movements. This pattern suggests the market is still undergoing a corrective phase rather than establishing a new trend. Following the modest bounce, BTC retraced back toward support.
The current decline does not appear aggressive or motivated by panic, reinforcing the notion of a gradual corrective pullback prior to a more substantial rebound attempt. Presently, Bitcoin is trading within a critical short-term support zone, ranging from $85,190 to $82,180. This zone is derived from prior consolidation and established Fibonacci support levels. Maintaining a position above this range is essential for preserving a bullish outlook.
If Bitcoin dips into the lower half of this support range, it would also serve to close the CME gap entirely. However, if buyers fail to hold this zone, the market could retrace to Friday”s low, a common occurrence during such corrective behaviors.
A definitive signal that Bitcoin is ready to rebound would be a breakout above the recent swing high near $87,820. Achieving this level would indicate that buyers are stepping in to absorb selling pressure. Until that occurs, the price remains susceptible to another minor downturn.
Taking a broader perspective, Bitcoin“s overall trend has not shifted significantly. The low from Friday may represent a short-term bottom, and the market appears to be constructing a larger recovery structure, potentially extending over several weeks. Although Bitcoin is still correcting from its recent peak, the decline remains controlled and orderly. As long as the support range below $85,000 holds, BTC seems to be gearing up for a broader rebound targeting higher resistance levels as the month progresses.
