Earlier in the day, Bitcoin (BTC) fell below $ 80,000 for the first time in more than three months. According to Binance data, BTC has reached $ 78,258, filling the gap of Mercantile Exchange (CME) between $ 78,000 and $ 80,000.
Bitcoin fills CME GAP, is it time to bounce back?
With today’s DIP, BTC has now filled all CME differences since March 2024.
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For the uninitiated, the CME GAP refers to the price difference which occurs on the table of Bitcoin CME term contracts between the fence price on Friday and the opening price on Monday, because CME does not negotiate on weekends. These gaps are often filled later while the price of Bitcoin is naturally retracting at these levels, acting as key support or resistance areas.
A new CME gap has now emerged due to the current sale on the market, triggered by the confirmation of US President Donald Trump that commercial prices on Canada, China and Mexico will take effect on March 4.
According to In Rekt Capital Rekt Capital, the new GAP CME is between $ 92,800 and $ 94,000. If the past data is something to pass, this new CME difference can work as a price magnet, pulling the BTC upwards and initiating a bullish trend reversal.
For example, in January 2021, BTC filled a CME difference between $ 29,410 and $ 33,050. After committing the gap, the BTC continued to drop more, before rising to $ 40,000.
That said, macroeconomic and geopolitical factors remain significant. The American Federal Reserve (Fed) and Trump continue to compete on interest rate policies. Although the Fed argued that it was not in a hurry to reduce the rates, Trump has repeatedly called upon immediate discounts.
However, positive inflation data could put pressure on the Fed to speed up the rate reductions. According to an X job By the letter from Kobeissi, the inflation of the January PCE – the favorite measure of the Fed – aligned with its projection of 2.5%.
Similarly, basic inflation – which measures consumption prices change to the exclusion of volatile items such as food and energy – was also online with expectations of 2.6%. However, CME Fedwatch data suggest that the Fed is likely to maintain the interest rates unchanged at the FOMC meeting on March 19.
Is the BTC below?
Although the BTC has dropped by almost 20% in the last month, some analysts estimate that more decline could still be ahead. A recent forecast According to suggestion with a standard charter, BTC could decrease another 10% before finding support.
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However, there are also signs that BTC can form a local background. Crypto Ali Martinez analyst note This pressure on the sale side is busy, which could indicate that the BTC stabilizes.
In addition, the feeling of the cryptocurrency recently flashed A strong counter-check signal, referring more to a potential price for BTC. At the time of the press, BTC is traded at $ 83,508, down 2.5% in the last 24 hours.
Star image of Unplash, X graphics and tradingView.com
