Bitcoin Bulls Eye CME Gaps for Next All-Time High

Bitcoin's recent price movements have sparked optimism among traders and investors, with key market indicators suggesting a potential bullish trend. Historical price gaps on the CME have been identified as a significant factor driving this optimism.

The CME gap, a liquidity point formed due to the price difference between market opening and closing, often acts as a magnet for price action. According to an expert from COINOTAG, these gaps can serve as demand levels, potentially signaling a recovery for Bitcoin (BTC).

COINOTAG's analysis reveals that BTC could be following a similar pattern to its 2020 trajectory. After a sharp decline to fill a CME gap below $12,000, Bitcoin went on to set an all-time high. Recently, BTC declined by 28.57% into a CME gap between $80,670 and $77,930, which could act as a demand level.

If BTC rebounds from this level, it could trade close to the short-term target of $92,755, where another CME gap lies, and potentially cross the previous all-time high recorded on the CME chart at $110,150. However, it's essential to note that COINOTAG also found other bullish confluences in the market that support a move up from the current price.

Multiple bullish confluences have surfaced, including a surge in addresses holding BTC over time. Long-term holders are increasing, reducing supply in the market and avoiding impulsive trade movements. At the time of writing, holder addresses had climbed to 39.26 million.

The Unspent Transaction Output (UTXO) also reveals bullish sentiment among transactions that have occurred within the last 24 hours and between a day to one week. Market participants appear to be acquiring BTC for long-term holding rather than immediate sell-offs.

Derivative traders in the market share the same bullish sentiment, with Bitcoin's Open Interest climbing subtly by 2.80% to $50.91 billion in the last 24 hours. The long-to-short ratio, which measures buying and selling volume in the derivatives market, recorded a reading of 1.0072, indicating ongoing buying activity.

In conclusion, as