CoinDesk Report:
Bitcoin plummeted to a low of $58,000 in the past 24 hours, failing to hold above the crucial $60,000 support once again. Analysts point to a gap on the Chicago Mercantile Exchange (CME) as the catalyst for the price drop, suggesting potential for a rebound in BTC’s future.
CME Gap Drives Bitcoin Below $60,000
Crypto analyst Daan Crypto hinted in a tweet that Bitcoin recently experienced a price drop to fill the CME gap around $60,000. The CME gap refers to the difference between Bitcoin prices at the CME futures market’s Friday close and Monday reopening.
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Source: X
Crypto analyst Speed Racer, sharing charts of CME futures for Bitcoin, also implicated the CME gap as a reason for Bitcoin’s recent decline. He noted market makers managing the BTC market in the short term, aiming to address the “$1650 CME gap over the weekend.”
Source: X
Crypto analyst Ninja further explained that the recent price decline was due to the CME gap, categorizing it as a “bullish sell-off.” He reassured that things would improve and the market could rebound. Ninja urged Bitcoin bulls not to panic despite acknowledging the current market conditions as potentially panic-inducing for anyone.
Fortunately, it seems the worst may be over as Daan Crypto revealed the CME gap has been completely filled. This indicates Bitcoin could find relief from its current price levels. Crypto expert Michael van de Poppe also confirmed the closure of the CME gap and predicted it’s time for BTC to rebound.
Crypto analyst Titan shared a similar view, disclosing the CME gap has been filled. He claimed nothing now stands in Bitcoin’s way as it’s time for the flagship cryptocurrency to shine. Charts shared by analysts suggest BTC could rise to $72,000 in the next uptrend.
Source: X
CME Gap Not the Only Concern
Selling pressure on Bitcoin is another factor contributing to its price decline. Farside Investors data shows significant net outflows persisting from Bitcoin spot ETFs, prompting issuers to sell their Bitcoin holdings to meet redemptions.
The German government also faces substantial selling pressure, with Arkham Intelligence data indicating ongoing sales of its Bitcoin holdings. Additionally, as the defunct cryptocurrency exchange Mt. Gox begins repaying its creditors with approximately $9 billion worth of cryptocurrencies, Bitcoin may face further selling pressure.
According to CoinMarketCap data at the time of writing, Bitcoin’s trading price is around $58,600, marking a decline of over 3% in the past 24 hours.
BTC Price Struggles with Shorts | Source: BTCUSD on Tradingview.com
