Bitcoin (BTC) had a wild weekend. After a dip to $78,258 on February 28th, it mostly recovered. But this price action created a huge new CME (Chicago Mercantile Exchange) gap, leaving some worried about another price drop.
What’s a CME Gap?
A CME gap happens because the CME futures market closes on weekends, while the spot market keeps trading. The difference between the CME’s closing price on Friday and its opening price on Monday is the gap. Historically, these gaps often pull prices back to fill them.
The Current Situation
Crypto analyst Rekt Capital pointed out that Bitcoin filled two previous CME gaps over the weekend. However, a massive new gap opened between $84,650 and $93,300. While the price bottomed out at $78,258, Rekt Capital warned that doesn’t guarantee another dip won’t happen. He believes that as long as Bitcoin stays above the $93,500 support level, any dips are just buying opportunities.
Another trader, Merlijn The Trader, predicted even more volatility after this new gap appeared. Coinglass data showed over $900 million in liquidations in just 24 hours due to the price swings.
Analyst Predictions: Bull vs. Bear
Analyst Will noted that the current positive sentiment around Bitcoin seems too strong to justify a retest of the previous accumulation range. He’s looking to buy more Bitcoin around the mid-$70,000 range.
Other analysts, like Ali Martinez, think Bitcoin could fall to $74,700. He pointed out that Bitcoin historically bounces back from long-term support levels in the mid-$70,000 range.
Coinbase analysts added that the lack of positive news, like the recent Bybit hack and economic uncertainty, is weighing on Bitcoin’s price. However, there’s some good news: Bitcoin spot ETFs are finally seeing some money flowing back in.
The Bottom Line
Bitcoin is currently trading around $90,000, down slightly. While it recovered from its weekend lows, the large CME gap and mixed analyst opinions suggest more volatility is ahead. Whether it’s a buying opportunity or a warning sign remains to be seen.
