This past weekend, Bitcoin's price demonstrated a bearish trend, dropping below the $94,000 mark. Let’s explore the reasons behind this decline and potential directions for movement.
Current Market Situation
Over the last weekend, Bitcoin's price plunged below $94,000 after reaching a local high of $97,895. This drop resulted from increasing bearish pressure. However, there appears to be sufficient bullish support at the $94,000 level, potentially aiding a short-term recovery in price.
CME Gaps Impact on Bitcoin Price
Bitcoin is known for filling CME gaps that have formed around current price levels. Typically, lower gaps trigger sharp pullbacks, while upper gaps lead to upward moves. Currently, two gaps are located near the present price: one between $96,400 and $97,600, and the other between $92,500 and $91,700. The Bitcoin price may first aim to fill the lower gap, which could coincide with a significant bullish rebound.
Forecast for the Upcoming Week
This week, events related to the FOMC and Coinbase earnings are scheduled, which could impact market volatility. If Bitcoin triggers a long trade, the price may reach local highs around $98,000. Meanwhile, the current daily trend of the On-Balance Volume (OBV) remains bullish, suggesting that deep pullbacks may not occur.
It will be interesting to watch which CME gap Bitcoin decides to close first, as the subsequent price action may depend heavily on this.
