Bitcoin Faces Pullback Risk as CME Gap Hints at Short-Term Correction

• Bitcoin’s CME gap between $86K and $83K may get filled, signaling a possible short-term pullback before another rally.
•  A weekly close above $96.5K could confirm a bullish trend, potentially pushing BTC toward a new all-time high.
•  Fibonacci levels indicate key support zones at $88.5K, $85K, and $82K, where buyers may step in if BTC retraces further.

A massive Sunday pump pushed BTC’s price near $96,500 before retracing to $92,962.26. CryptoBullet, a well-known analyst, highlighted concerns about the CME gap between $86,000 and $83,000. Historically, such gaps often get filled, hinting at a potential short-term pullback. However, in the mid-term, Bitcoin still appears poised for a new all-time high, provided it secures a strong weekly close above $96,500.

CME Gap Signals Potential Correction

Price action of Bitcoin on Binance and CME Futures charts illustrates similar similarities. BTC resisted at $96,500 on Binance before it retraced. The CME Futures illustrates the same action with a price decline from $95,000 to $93,560. A gap in CME between $86,000 and $83,000 exists to support the potential for a short-term correction.

Historically, CME gaps tend to get filled as price action aligns with liquidity zones. Consequently, Bitcoin may dip to these levels before resuming its upward trajectory. However, a weekly close above $96,500 could negate this scenario and confirm a stronger bullish trend.

Short-Term Pullback or Long-Term Breakout?

Bitcoin’s recent price behavior indicates strong selling pressure. A series of lower highs and lower lows on the weekly Binance chart suggest a bearish short-term structure. Meanwhile, Fibonacci levels point to potential support zones where buyers could re-enter. If BTC fails to hold above $88,500, a deeper retracement toward $85,000 or lower could unfold.

However, the mid-term outlook remains optimistic. If Bitcoin stabilizes above key resistance levels, it could enter the final wave of its bullish cycle. A strong breakout past $96,500 would likely trigger a move toward a new all-time high. Traders should monitor the next weekly close for confirmation.