Bitcoin CME Gap at $28,000 Filled, But Correction Risk Looms
Bitcoin’s (BTC) upward trend has persisted, reaching its highest level since June 2022 before the FTX collapse. BTC has breached the nearest resistances, successfully filling the Chicago Mercantile Exchange (CME) gap and breaking above $28,400.
However, the possibility of a short-term correction remains a concern, with bears trying to delay the confirmation of a sustained bull market.
CME gaps are often known in the market as discrepancies that occur when the price of Bitcoin moves sharply outside of regular trading hours on the Chicago Mercantile Exchange. As the CME is closed on weekends, the price of BTC during these periods can differ from the closing price on the previous trading days.
This all leads to a gap between the closing and opening prices when trading resumes. Despite Bitcoin’s recent gains, it’s worth noting that its price remains highly volatile and subject to significant fluctuations. So, what are the remaining gaps for the flag cryptocurrency in the market yet to be filled?
One CME GAP Filled, Two More To Go For Bitcoin
According to the crypto analyst who goes by the pseudonym MikyBull, “Although Bitcoin has managed to fill the $28,000 gap, after a weekly close above $27,500, a new huge gap is being created at $27,000, which may delay the continuation of the uptrend if confirmation of a move to the downside to filling the gap is in place.”
Looking at the chart, a significant gap at $20,300 remains to be filled for Bitcoin. While there is no guarantee that this gap will be filled, it is possible that price action could move back toward the opening price and jeopardize the current uptrend for the market’s largest cryptocurrency.
Key Support And Resistance For BTC
Bitcoin is inching closer to confirming the end of the bear market and setting its sights on the $30,000 zone. However, with a current trading price of $27,500, BTC is approaching a strong resistance zone at $28,600 as it enters a new, fully-formed bull trend.
If Bitcoin cannot surpass the next resistance, the previous obstacle at $25,200 could be a crucial support level to prevent the cryptocurrency from falling below this mark. This aligns with the 200-day moving average (MA), a key floor for Bitcoin to maintain its current uptrend.
Banking instability has made Bitcoin an attractive, safe haven for investors, but due to its inherent volatility, sharp fluctuations in both directions are likely to be a common occurrence. As a result, corrections and retests of new resistance levels will likely emerge as Bitcoin continues to experience ups and downs in the market.
BTC has reported significant gains in wider time frames, with a 26% increase over the last seven days and a 24% increase over the last fourteen days. However, over the past 24 hours, the market’s largest cryptocurrency has seen a 1% decrease following an unsuccessful attempt to break through the $28,600 resistance level.
Featured Image from Unsplash, chart from TradingView.com.
