Bitcoin’s been on a wild ride lately, hitting record highs and then crashing back down. Now, it’s approaching a crucial point: the CME gap close, which analysts predict could send it towards $83,000. But what happens next?
The CME Gap Close Explained
The CME (Chicago Mercantile Exchange) gap close is a thing in the Bitcoin futures market. Basically, gaps appear in the price chart when the CME closes for the weekend and opens on Sunday. Bitcoin often “fills” these gaps, meaning its price revisits the missing price range. Right now, a gap around $83,000-$84,000 is waiting to be closed.
Analyst Predictions: A Dip Before the Bounce?
One analyst, Astronomer, on X (formerly Twitter), thinks Bitcoin will dip to this $83,000-$84,000 support level before bouncing back. He sees this CME gap close as a key technical indicator. He expects a consolidation period around this support before a price increase.
He also points out that historically, Bitcoin often dips on Mondays and Tuesdays after a bearish Friday close. Plus, we’re still in the pre-New York Open (NYO) trading phase, which could lead to an intraday reversal. However, he anticipates a drop during the NYO session due to low liquidity and untested support levels. In short, he’s not expecting a bullish short-term outlook.
His worst-case scenario puts Bitcoin dipping to $81,400-$82,400 before any rebound.
The Potential Rebound and Take-Profit Levels
Despite the bearish short-term outlook, Astronomer sees a stable macro trend for Bitcoin. He’s identified the $83,000-$84,000 zone as a potential buying opportunity.
If Bitcoin holds the CME gap close support, he predicts a bounce towards the weekly open price of around $86,000. From there, he’s marked several potential take-profit levels (TP1-TP4) suggesting Bitcoin could rise to $87,000-$88,000.
However, if Bitcoin breaks below his worst-case support zone ($81,400-$82,400), a more significant price correction could be on the cards.
