Bitcoin’s price has plummeted to as low as $58,000 in the past 24 hours, failing to maintain support above $60,000. Analysts point to the CME gap as the cause of this decline, with suggestions that Bitcoin could see a relief bounce in the near future.
Crypto analyst Daan Crypto suggested that Bitcoin’s recent price drop was due to closing the CME gap around the $60,000 range. The CME gap refers to the difference in BTC’s price on the Chicago Mercantile Exchange futures market between Friday’s close and Monday’s reopening.
Speed Racer and Ninja also referenced the CME gap as the reason behind Bitcoin’s decline, with Speed Racer noting that market makers were influencing the short-term BTC market to close the $1650 CME gap. Ninja described the selling pressure as “bullish selling” and reassured Bitcoin bulls of a potential market rebound.
Fortunately, Daan Crypto confirmed that the CME gap had been closed, indicating a possible relief bounce in Bitcoin’s price. Crypto expert Michael van de Poppe and analyst Titan of Crypto echoed this sentiment, with Titan predicting a rise in BTC’s price to $72,000 on its next leg up.
However, selling pressure remains a concern for Bitcoin’s price decline, as indicated by Farside Investors’ data showing significant net outflows from Spot Bitcoin ETFs. The German government’s continued selling of Bitcoin holdings and potential selling pressure from the Mt. Gox exchange’s creditors further add to the downward pressure on BTC’s price.
At the time of writing, Bitcoin is trading at around $58,600, down over 3% in the last 24 hours. Despite these challenges, analysts remain optimistic about a potential relief bounce in Bitcoin’s price in the near future.
In conclusion, while the CME gap closure and potential relief bounce offer some hope for Bitcoin’s price, selling pressure from various sources continues to pose a threat to its stability. Traders and investors should monitor the market closely for any developments that could impact Bitcoin’s price movements.
