Bitcoin's next big move hinges on $86,800 CME gap: traders await decisive break or retracement.

Bitcoin is trading near the $86,800 CME gap, a key area that could influence its next major price movement. Traders are accumulating liquidity around this level, and a decisive break above $86,800 could propel Bitcoin higher, while a failure to do so may result in a reevaluation of lower support points or increased market instability. The market's behavior suggests that traders are awaiting confirmation on whether Bitcoin will move decisively past this point or retrace to lower support levels.

The cryptocurrency market is witnessing a pivotal moment as Bitcoin (BTC) trades near the $86,800 CME gap, a significant area that could influence its next major price movement. This crucial level has attracted the attention of traders, who are accumulating liquidity around this area [1].

Bitcoin's proximity to the $86,800 CME gap is not a mere coincidence. This gap, created in November 2021, represents a price level that has yet to be filled [1]. Historically, unfilled CME futures gaps have acted as near-term price magnets for Bitcoin [1].

The importance of this level is further emphasized by the observation that Bitcoin has developed a brand new CME gap between $92,700 and $94,000 [1]. This upside gap coincides with the lows of Bitcoin's three-month-long trading range, offering confluence to the idea of price revisiting this level as part of a potential relief rally [1].

Traders are closely monitoring the market's behavior around this level. A decisive break above $86,800 could propel Bitcoin higher, potentially leading to a retest of the all-time high at $124,000 [1]. Conversely, a failure to do so could result in a reevaluation of lower support points or increased market instability [1].

The market's anticipation of Bitcoin's next move is evident in the dispersed bid liquidity around $80,000 and the wall of asks up to $90,000 [1]. This imbalance highlights the importance of the $86,800 level and the potential consequences of a break above or below it.

Despite the uncertainty surrounding Bitcoin's near-term price action, some analysts are calling for an enduring reversal to take place. The Crypto Fear & Greed Index, which measures market sentiment, hit multi-year lows of just 10/100 this week, surpassing the level of "extreme fear" that accompanied the collapse of crypto exchange FTX [2].

In conclusion, the cryptocurrency market is at a crossroads as Bitcoin trades near the crucial $86,800 CME gap. Traders are closely watching this level for signs of a breakthrough, which could have significant implications for the market's short-term and long-term price dynamics.

References:
[1] Cointelegraph. (2023, February 27). Is Bitcoin price about to fill 78k CME futures gap? Retrieved from https://cointelegraph.com/news/is-bitcoin-price-about-to-fill-78-k-cme-futures-gap
[2] Alternative.me. (n.d.). Crypto Fear & Greed Index. Retrieved from https://alternative.me/crypto/fear-greed