What Will Happen After Bitcoin Closes CME Gap?

Bitcoin led the market as it registered several declines last week. It grappled with massive selling pressure as the conflict in the Middle East escalated to new heights.

The apex coin dropped below its two-month low on Sunday as reactions over the recent action by the US reached new levels. It dipped from $103,387 to a low of $98,240. Although it recovered and ended the day at around $101k, it spurred speculation of further declines.

Bitcoin ended Friday at $103,316. The 1-day chart reveals that the asset experienced significant volatility over the weekend, resulting in prices opening on Monday at $100,990. The Bitcoin CME futures are opening with a gap spanning over $2k. 

Traditionally, the apex coin will rally to fill this gap. The buyback is underway, and the apex coin is edging closer to filling it. However, the asset is grappling with notable selling pressure at $102k. The 2-hour chart shows a gradual drop in momentum over the last six hours. 

While the largest cryptocurrency will likely return to $103k, traders are more interested in what will happen after it closes the gap.

Investors expect further price plummet after BTC reclaims the highlighted mark. Events over the weekend have yet to affect the US stock market, as it was closed during this event. China dumped some US bonds as it condemned the US for its involvement in the Middle East conflicts. Reports suggest that it sold over 68% of its holding and may sell more.

The crypto market tanked following the announcement of US involvement, as many traders panicked and sold. The same action will unfold in the stock market once it opens. Traders may anticipate further declines in the coming hours as the declines across key instruments like S&P and NASDAQ will reflect on Bitcoin.

Bitcoin Sees Massive Selling

Lookonchain reported that a Bitcoin OG holding 300 BTC recently transferred 61 to another wallet after 12 years of dormancy. The transfer sparked massive discussion, as such events happen occasionally. It is more likely to occur during a bull market when many perceive the top is in. Happening at such a critical time may indicate that some believe the market has already topped.

Data from Coinglass shows that the derivatives market is heating up, with short positions increasing. The market is seeing a 50.9% long position against a 49% short position. While this indicates that the apex coin is seeing more traders hopeful of further upside, trading action on Sunday was more bullish as the longs accounted for more than 52% of the open positions. 

With some investors switching positions after the previous day’s shakeout, BTC risks further declines. The platform also reveals the reason for BTC’s failure to break above $102k decisively. There are massive sell orders around $102,420, and buying pressure remains relatively low.

Away from on-chain indicators, the 1-day chart indicates a gradual rise in buying pressure. The relative strength index is rising, up two points from the previous day. The asset rebounded closer to bollinger’s lower band, which may lead to price upticks.

Bitcoin will look to retest bollinger’s SMA at $105k, increasing the chance of further recovery. A green close on Monday will mark the first in five days, and the coin is more likely to surge as it sees a 33% increase in trading volume. 

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