Bitcoin's CME Gap: $84K to $93K, Analysts Predict Pullback

Bitcoin's volatile weekend price action has left the premier cryptocurrency with a significant gap on the Chicago Mercantile Exchange (CME), raising concerns about a potential pullback to the low $80,000 level. Despite recovering from a dip to $78,258 on February 28, Bitcoin has created a new CME gap between $84,650 and $93,300.

Analysts have been discussing the implications of this new gap. Rekt Capital, a crypto analyst, noted that while Bitcoin filled two key CME gaps over the weekend, the creation of a new, massive gap suggests that the digital asset may witness another pullback. However, Rekt Capital also pointed out that a lower price level does not necessarily mean that Bitcoin won't revisit that price level.

CME gaps, which occur due to the difference between Bitcoin's closing price on the CME futures market and its opening price the next day, often work as price magnets. Even if Bitcoin hits the lower end of the latest CME gap at $84,650, it would still constitute a higher low relative to Friday's low of $78,258. Rekt Capital concluded that as long as Bitcoin holds the macro support at $93,500, any short-term downside volatility will only present opportunities.

Fellow crypto trader Merlijn The Trader remarked that volatility is about to go parabolic following the creation of the new massive CME gap. According to data from Coinglass, heightened price volatility has already led to liquidations worth over $900 million in the past 24 hours.

Another crypto analyst, Will, noted that the general sentiment around Bitcoin is too euphoric for a retest of a previous accumulation range. The analyst added that they are eyeing the mid $70,000 range to accumulate Bitcoin.

While Bitcoin currently trades close to the $90,000 level, analysts believe that the top digital currency by market cap could slip to $74,700. Crypto analyst Ali Martinez recently highlighted that historically, Bitcoin tends to rebound from long-term support levels, which currently sit in the mid $70,000 range.

In related news, Coinbase analysts remarked that Bitcoin's price is struggling due to the absence of any