Bitcoin News Today: Bitcoin nears $118K CME Gap as $150K potential looms

Bitcoin is nearing a critical price level as it approaches the $118K CME Gap, a threshold that could trigger significant price movements. Analysts suggest that filling this gap may generate upward momentum, potentially propelling the asset toward the $150K milestone. The current market environment, marked by strong investor sentiment and rising trading volumes, supports the possibility of a bullish breakout.

The CME Gap refers to the price difference that occurs when the Bitcoin futures market closes over the weekend. Historically, when gaps like this are filled, they tend to create momentum in the direction of the fill. Merlijn The Trader notes that Bitcoin’s price at $118,000 is a critical magnet for future movements, and every time such a gap is closed, it has historically triggered upward momentum, setting the stage for a potential rally [1].

The significance of the $118K level is underscored by its potential to act as a catalyst for further price gains. If the price closes the gap, it could signal a continuation of the bullish trend. However, failure to do so may lead to sharp volatility as traders adjust to the evolving market conditions [2]. This dynamic highlights the high stakes for investors and traders alike, who are closely watching for signs of a sustained breakout.

Bitcoin’s trajectory has shown consistent strength since 2023, with a series of price surges and rising trade volumes indicating ongoing investor confidence. Analyst Kamran Asghar notes that Bitcoin has followed a bullish trend since May 2023, with trade volumes surging during each expansion phase. For instance, Bitcoin rose 105.79% between May and November 2023, reaching $36,023.28. This upward momentum continued into 2024, with a 72.91% increase from November 2023 to May 2024 and a further 50.48% gain from May to November 2024 [3].

As the price inches closer to $150K, market participants are closely monitoring whether the $118K level will act as a stepping stone. Asghar suggests that the final phase toward $150K may already be in motion, with the market riding a powerful bullish rhythm. However, the real test for Bitcoin lies in whether it can maintain its upward trajectory after closing the gap. If it fails to sustain momentum, increased volatility could follow as the market recalibrates.

In conclusion, Bitcoin is nearing the $118K CME Gap, a level that could either trigger a significant surge toward $150K or lead to a period of sharp volatility. The current market conditions, including rising trading volumes and strong bullish sentiment, support the potential for a breakout. However, traders must remain cautious, as the outcome of the gap-fill could determine the next major phase of Bitcoin’s price action.

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[1] Merlijn The Trader

[2] Merlijn The Trader

[3] Kamran Asghar

Source: [1] Merlijn The Trader (https://en.coinotag.com/bitcoin-approaches-118k-cme-gap-could-this-signal-a-move-toward-150k/)