Bitcoin (BTC) is currently navigating the $90,000 mark as it completed a significant price correction, filling a gap in the CME Group futures market at $88,000. This event occurred on Wednesday, marking a notable moment for potential price recovery.
Recent data from TradingView indicated a slight increase of 1.1% for Bitcoin, following a drop to $87,800, which is the lowest point since January began. This decline has resulted in a loss of over $10,000 from the highs recorded earlier this month.
The filling of this CME gap is particularly relevant as such gaps are often viewed as short-term price targets, with the market frequently returning to them shortly after they are created. On social media, traders discussed the implications of this gap-fill, with some expressing optimism while others remained skeptical about the market”s strength.
One trader, known as CW, suggested that the gap-fill was necessary for a “stable rally” moving forward. In contrast, trader Jelle expressed caution, predicting a possible retest of a downward trendline after an initial breakout, stating, “Higher high immediately followed by a lower low.” This sentiment reflects a growing bearish outlook among certain investors.
As the trading day approached the opening of Wall Street, macroeconomic factors continued to influence the sentiment in the crypto market. In a recent market update, trading firm QCP Capital characterized Bitcoin as behaving like a high-risk asset, highly sensitive to interest rates and geopolitical developments. They concluded that without clearer policy signals, the crypto market is likely to remain reactive.
Meanwhile, traditional assets like gold are outperforming, reaching record highs, which adds to the pressure on Bitcoin as it continues to navigate a challenging market environment.
This analysis does not constitute investment advice. All trading carries risks, and readers are encouraged to conduct their own due diligence before making investment decisions. The content presented here is based on the latest available data and is subject to change.
