Bitcoin's price actions have captured attention as a CME gap between $77,000 and $78,000 is anticipated for filling. Analyst Anup Dhungana emphasizes the gap's significance, stating that "everything is lining up perfectly." The price currently hovers around $89,575, with market players watching closely how Bitcoin responds at this key juncture.
Price Dynamics and CME Gap
Gaps arise from price differences left uncorrected during CME weekend closures, and historically, such gaps tend to be filled, supporting expectations of a short-term corrective downward move before a bullish recovery.
Historical Trends and Technical Patterns
The chart highlights Bitcoin’s steady rise since breaking its downtrend in late 2022, when the price dipped below $16,000. By March 2023, Bitcoin broke out of its descending wedge, leading to a significant rally towards $40,000 by mid-2023. The breakout zone between $23,000 and $30,000 formed a consolidation area where price action paused before climbing further.
Potential Scenarios and Analyst Insights
According to analytics, Bitcoin may fall to fill the CME gap before ascending again towards the $140,000 target. This price behavior follows a correction pattern where, over the long terms, it becomes a good reaccumulation point. The green consolidation zone towards the end of 2024 suggests a bullish break and pause pattern, adding to market rhythm in pullbacks and surges.
Although a previous decline can be expected, Bitcoin retains a bullish status in the long run. This is significant as long-term support and higher highs of the ascending support line still attract buyers. The gap makes traders cautious; however, hope remains due to the asset's resilience above $85,000.
