Bitcoin, the largest cryptocurrency by market cap, recently dropped over 6% to a low of $57,880 before recovering slightly to $59,257. This sharp decline happened quickly after Bitcoin fell below the important $61,000 support level.
During this drop, a new CME Gap appeared in the price chart, between $60,400 and $61,400. This gap is something traders watch closely, as it could hint at future price moves.
Bitcoin CME Gap At $61,400
According to the prominent crypto analyst, Titan of Crypto, the occurrence of a CME futures gap on Bitcoin’s daily timeframe suggests that the market may revisit these levels to complete the price adjustment.
#Bitcoin Short-Term Update đź’Ą
A CME futures gap has appeared on the daily timeframe. #BTC might pull back to around $61,400 to fill it. pic.twitter.com/qHbmNIsSru
— Titan of Crypto (@Washigorira) August 28, 2024
Bitcoin CME gaps occur when there is a difference between the closing price of Bitcoin on the CME (Chicago Mercantile Exchange) futures market and the opening price of the next trading session. These gaps are often watched by traders as they can indicate potential price movements.
In Bitcoin’s case, gaps are often filled, meaning the price might move to fill the gap. However, based on current analysis, Bitcoin may experience a pullback to approximately $61,400 to close this gap.
What to Expect in Q4
Bitcoin is currently in its typical seasonal pattern, known as the “chop season,” which usually runs from March to early October. Meanwhile, prominent crypto trader Crypto Jelle suggests that Bitcoin’s price movements are often erratic, with no clear direction.
#Bitcoin continues its seasonal chop season, which tends to run from March until early October.
RSI still hovering around the weekly level – as is customary as well.
Couple more weeks to go until Q4 👇🏼👀 pic.twitter.com/9FSsOoVFT7
— Jelle (@CryptoJelleNL) August 28, 2024
Crypto Jelle also points out that the Relative Strength Index (RSI), remains stable around its weekly level, suggesting that the market is not currently overbought or oversold. Historically, Q4 has often seen more decisive market movements, signaling the beginning of the bull market
Bitcoin Price To Rebound
As of now, bitcoin is trading at $60,127, down 5.5%. However, its trading volume has increased by 46% to $41.62 billion, and its market cap stands at $1.18 trillion. Despite the downturn, some predictions suggest Bitcoin could rebound to $65,000 if it breaks a key resistance level.