Bitcoin Rebounds After Deep Correction, Eyes CME Gap

Bitcoin, the world's largest cryptocurrency by market capitalization, has experienced a significant correction this week, retesting key support levels. As the price begins to recover from recent lows, some analysts anticipate a potential bullish relief over the weekend.

Bitcoin has dropped 21% from its peak of $99,000 last week, falling below the $80,000 level for the first time since November. The correction also saw Bitcoin trade below its post-US election price range and reach a new three-month low of $78,000 on Friday morning.

Market watchers have noted that Bitcoin's recent decline filled a CME Gap between $78,000 and $80,700. Rekt Capital pointed out that Bitcoin is experiencing a strong rebound against the partially filled CME Gap and is doing so on above-average seller volume. The flagship crypto has surged around 7% from today's lows, hovering between the $83,000 and $84,000 support zone for the past few hours.

Crypto analyst Jelle highlighted that Bitcoin has done three drives in deeply oversold territory this week and is retesting local lows before today's drop, suggesting a weekend relief seems likely. Reclaiming the $84,500 support is key for BTC's recovery, as the past two retests ended up resulting in new lows. However, today's rebound seems different due to BTC touching the 200-ema cluster for the first time this week and breaking above it, which could signal an interesting weekend with the new CME Gap at $93,000 open.

Rekt Capital pointed out that Bitcoin has filled every CME Gap that has formed since mid-March 2024, and only the newly formed CME Gap between $92,800 and $94,000 remains open after this retrace. If BTC continues this pattern, the price could see a rebound to fill the new gap soon. The analyst has outlined two potential scenarios for BTC's current downside deviation, with the price potentially revisiting $93,500 by the end of the week or in the next two to three weeks as part of a post-breakdown relief rally.

As of this writing