Bitcoin’s been having a bit of a rollercoaster ride lately. It’s fallen below $100,000 and is currently filling a “CME gap.” But don’t panic just yet – some analysts think this might actually be a good thing.
What’s a CME Gap, Anyway?
A CME gap happens when Bitcoin’s price jumps between the close of one trading day and the open of the next (often over weekends). It leaves a gap in the price chart. Bitcoin often moves to fill these gaps before continuing its overall trend.
A Bearish Dip, But a Potential Bullish Bounce?
Crypto analyst Rekt Capital noticed Bitcoin is currently filling a big CME gap. While this is a bearish move (meaning the price is going down), Rekt thinks it could be setting up for a higher low.
He shared charts showing Bitcoin’s historical support and resistance levels. If Bitcoin can hold above recent lows and create a new, higher low, it could signal that the overall upward trend is still alive. However, if it breaks below support, a bigger crash could be on the horizon.
A Recent Surge and a Look Ahead
Recently, Bitcoin had a massive 9% jump, pushing it back above $90,000. Another analyst, Jelle, sees this as the “higher low” everyone’s been waiting for. Jelle predicts Bitcoin could steadily climb towards $95,000.
Even with recent bearish pressure and price drops, Jelle remains optimistic about a Bitcoin recovery.
The Current Situation
At the time of writing, Bitcoin is showing signs of recovery, with a 5.3% jump in a single day. However, trading volume is down. Whether this is a temporary bounce or the start of a sustained recovery remains to be seen.
