Bitcoin Closes CME Gap, Bulls Eye $80K Rebound

Bitcoin (BTC) has experienced a significant price drop in the past 24 hours, losing over 6.8% of its value and falling below the $80,000 mark. This decline has allowed BTC to close a crucial gap on the CME exchange, as highlighted by crypto analyst Rekt Capital in a recent post on X.

Rekt Capital's chart revealed that BTC has finally filled the historical CME gap, which was formed in November 2020. The gap was between $78,000 and approximately $80,700. On the crypto market, price gaps are formed when an asset opens much higher or lower than its previous closing price, creating a gap in the chart. These gaps often act as magnets for future price movements, as traders anticipate the asset will eventually return to the gap level to "close" it.

The implications of CME gaps for Bitcoin lie in their predictive power. Market participants closely monitor these gaps for potential trading opportunities. Historically, closing a downward gap for BTC indicates a bullish signal, suggesting the market has addressed an imbalance and potentially paving the way for a price rebound. Hence, closing the CME gap between $78,000 and approximately $80,700 could result in Bitcoin regaining its lost momentum.

Industry experts and analysts have expressed an optimistic outlook for Bitcoin amid the ongoing market volatility. The $1 million Bitcoin advocate Samson Mow stated earlier today that he is still bullish on the leading coin, seeing the price of Bitcoin moving higher as institutional adoption increases. Meanwhile, Strategy's CEO Michael Saylor urged investors to continue buying BTC despite the recent dip. On the weekly chart, BTC has decreased by over 19% to trade at $79,850 at press time. This decline has reverberated within the crypto market, with major cryptocurrencies paring their recent gains.