BTC Faces Bearish Pressure Despite 7.7% Surge – Will the Gap Close?

• A gap formation between $92,500 and $85,720 on CME futures produces an indication of impending price decline followed by a stabilization period.
• The ATR indicator displays 5,231 points while the ADX indicator shows 29.35 indicating a highly volatile market with persistent bearish tendencies.
• Traders exhibit caution because the market rose to $92,732.56 by 7.7% but they continue to watch for potential price drops.

Bitcoin recently closed a CME futures gap, only to create a much larger one within days. This development has caught the attention of traders and analysts who monitor CME gaps for potential price movements. 

Bitcoin initially filled a CME gap that had been a focal point for traders. Shortly after closing one gap, Bitcoin’s price action created a new, much larger one, raising speculation about potential retracements or further downward pressure.

Bitcoin Futures: Bearish Trend, $92.5K-$85.7K Gap & High Volatility

According to Peter Brandt highlights a significant price gap sugges a potential area where the market could move in the near term. Bitcoin futures maintain a current price of $94,045 whereas the market displayed a major dip before recovering slightly. The $92,500 to $85,720 range functions as a technical price magnet because gaps in futures markets usually attract investors before new trends emerge.

The price trend remains in a bearish position indicated by continuous declining highs and falling lows. Short-term market forces remain negative because the price stands below the (MA 8) located at $96,565.75. Additionally, the  (ATR) is at 5,231, indicating elevated volatility, which suggests that further price swings are likely. The (ADX) stands at 29.35, implying that a strong trend is present, although not at extreme levels. 

Bitcoin’s New Gap: Correction Fears Amid 7.7% Surge

The sudden formation of a larger gap has raised concerns about further price corrections. If Bitcoin follows its usual pattern, traders may anticipate a move to close this newly created gap before resuming any potential uptrend.

Bitcoin’s price saw a sharp decline after forming the new gap, leading to increased sell-offs in the market. But currently it is trading at $92,732.56 with a price surge of 7.7% showing positive momentum in the market.