Bitcoin's $54K CME gap signals a potential retrace before a big breakout. Learn why a retest is likely and how it fits into BTC's price momentum.
Bitcoin's recent surge to $58K has traders optimistic, but a retrace to $54,000 may occur before a big breakout. The CME futures gap at $54K, combined with other key support levels, suggests that BTC could experience a short-term correction before pushing past $60,000.
Key Points:
Bitcoin has formed a CME gap near $54,000.
Bitcoin futures trading on the Chicago Mercantile Exchange (CME) often creates price gaps between the closing price on Fridays and the opening price on Mondays due to the weekend closure. A recent gap has appeared near $54,000, which typically acts as a significant point for market rebalancing. In the past, these gaps have often been filled by price movements, meaning Bitcoin could revisit this level before resuming its upward trend.
BTC's 6.5% surge on Sept. 9 fueled optimism, but a retrace is likely.
On September 9, Bitcoin surged by 6.5%, climbing as high as $58,153. This rapid price increase was met with optimism as it marked a weekly close above $54,000, reinforcing hopes for a continued rally. However, with key resistance levels still in play and the $54,000 CME gap in focus, a short-term retracement to this level seems probable. Such corrections are typical in volatile markets, offering opportunities to test support levels before the next upward push.
Key support levels suggest a possible dip to $54,250–$53,500.
Technical analysis highlights crucial support zones between $54,250 and $53,500, aligning with the CME gap and previous resistance-turned support levels. These price points have been areas where buying interest tends to increase, meaning Bitcoin could dip into this range before finding new momentum. If the price holds within this zone, it could provide a solid foundation for the next upward move.
Historical data shows CME gaps often get filled during breakouts.
CME gaps have been a reliable tool for predicting Bitcoin's price retracements. Historically, Bitcoin's price tends to revisit these gaps during momentum shifts. In Q3 of this year, Bitcoin filled all 10 CME gaps that formed, further reinforcing the likelihood of the $54,000 gap being closed. While these gaps do not always get filled immediately, traders frequently view them as key targets for market corrections, often leading to higher volatility around those levels.
Bitcoin is poised for a strong fourth quarter, but short-term price action suggests a retest to $54,000 before breaking key resistance levels. Traders should keep an eye on CME gaps and key support zones, as they could guide BTC’s next big move.
Source: Cointelegraph
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