Bitcoin's Wild Ride: CME Gap Nears Closure, Traders Eye $70,000-$80,000 Liquidity

Bitcoin's (BTC) price has been on a rollercoaster ride, with analysts and traders speculating on when the cryptocurrency will find its bottom. As BTC/USD approaches its old all-time highs from March 2024, the question on everyone's mind is: where will the price finally stabilize?

One key area to watch is the "gap" in CME Group's Bitcoin futures markets, which lies at around $78,000. As of February 28, BTC/USD has nearly filled this void, with popular trader and analyst Rekt Capital confirming that Bitcoin is getting closer to filling its CME Gap. Additionally, there is an upside CME gap at around $92,000, which could serve as a target should a relief bounce occur.

BitQuant, a pseudonymous X user who has successfully called various key BTC price highs and lows, has been conservative on the near-term outlook. In December, he warned that a return to the bottom of Bitcoin's old trading range at $90,000 would not mark reliable support. Now, BitQuant is referencing his long-term expectations of a trip to the mid-$70,000 zone before "up only" BTC price action resumes.

Traders are also keeping an eye on exchange order book buyer interest to time market bottoms. Currently, liquidity is thickening throughout the $70,000-$80,000 corridor, with over $1.8 billion in bids appearing on the Binance futures pair. However, it's important to note that such liquidity can often be a product of manipulation by large-volume market participants and may not necessarily indicate a market bottom.

As Bitcoin's price continues to fluctuate, investors and traders must remain vigilant and conduct their own research when making decisions. The risks associated with catching a falling knife are high, and it's crucial to be patient and wait for the right opportunity to enter the market.