Bitcoin May Retrace 1.98% to $114,000 on CME Gap

Bitcoin, the world's largest cryptocurrency by market capitalization, has recently experienced significant price movements. According to an analyst, Bitcoin may retrace to $114,000 to fill a gap in the CME (Chicago Mercantile Exchange) market. This prediction is based on the technical analysis of the cryptocurrency's price chart, which shows a potential support level at $114,000. The analyst's forecast suggests that Bitcoin could drop to this level before resuming its upward trend.

The current price of Bitcoin is trading at approximately $113,506.5, reflecting a 1.98% increase on the 1-hour chart. This price movement has been driven by forced buying pressure, which has propelled Bitcoin through several key resistance levels, including $113,000, $114,000, and $115,000. The higher the price went, the more momentum it gained, indicating a strong bullish sentiment in the market.

The analyst's prediction of a retracement to $114,000 is based on the concept of filling a gap in the CME market. Gaps occur when the price of an asset moves sharply in a short period, leaving a gap on the chart. These gaps are often filled as the price retraces to the level where the gap occurred. In this case, the gap is at $114,000, and the analyst believes that Bitcoin could retrace to this level to fill the gap before continuing its upward trend.

According to the analyst's forecast, Bitcoin is likely to fill the CME gap during the CPI data release, followed by further upside. However, another analyst pointed out the possibility of Bitcoin experiencing a further pullback to $108,000. The recent Bitcoin rise left a gap on the CME futures market between $114,380 and $115,630. Futures gaps are usually "filled," with traders often considering these price levels as resistance or support based on market structure. If history is any indication, the BTC price may eventually drop to fill the CME gap at $114,400.

The potential retracement to $114,000 could provide an opportunity for traders to enter the market at a lower price. However, it is important to note that the cryptocurrency market is highly volatile, and price movements can be unpredictable. Traders should exercise caution and conduct their own analysis before making any trading decisions.

In conclusion, the analyst's prediction of a retracement to $114,000 is based on technical analysis and the concept of filling a gap in the CME market. While this prediction could provide an opportunity for traders, it is important to remember that the cryptocurrency market is highly volatile, and price movements can be unpredictable. Traders should conduct their own analysis and exercise caution before making any trading decisions.