Bitcoin’s been on a roll, recently climbing towards $120,000 after a minor dip. But hold your horses! Experts are eyeing a potential problem: an unfilled gap on the Chicago Mercantile Exchange (CME). This gap could cause a temporary price drop.
The CME Gap: A Potential Crash?
Crypto analyst Ted Pillows sees this CME gap near $116,500 as a significant hurdle. His analysis suggests Bitcoin might experience a correction before hitting a new all-time high. Bitcoin recently bounced back after filling a previous CME gap, but this new one is different.
Historically, these gaps usually get “filled” – meaning the price retraces to cover the missing price range. Pillows thinks this gap near $116,500 will likely be filled soon, potentially causing a temporary price crash. But he’s optimistic; he expects any drop to be short-lived, paving the way for another price surge and a new all-time high.
Other Experts Weigh In
Another analyst, “Daan Crypto Trades,” also discussed the CME gap, highlighting a newly formed gap between $116,500 and $118,400. While CME gaps usually close quickly, this one’s different due to its size and proximity to Bitcoin’s previous all-time high. Daan suggests this could lead to “price discovery,” where the gap stays open longer because of strong upward momentum. He estimates the gap will likely close only when Bitcoin’s price gets within 1-2% of it—around $120,000. As of now, Bitcoin is trading above that level.
In short, while a temporary dip is possible due to the CME gap, many analysts believe it’s just a minor setback on Bitcoin’s path to new heights.
