Bitcoin had a recent price decline to as low as $58,000 within the last 24 hours, failing to hold above the crucial support level of $60,000. Analysts have suggested that the cause of this drop was the closing of the CME gap, a difference in Bitcoin’s price on the Chicago Mercantile Exchange futures market between Friday’s close and Monday’s open.
Daan Crypto and other analysts pointed to the CME gap as the reason for Bitcoin’s decline and predicted a relief bounce in the near future. Market makers were said to be running the BTC market in the short term to close the $1650 CME gap from the weekend. Despite the recent bearish selling pressure, experts are optimistic about a market rebound and advised Bitcoin bulls not to panic.
Good news emerged as Daan Crypto confirmed that the CME gap has been fully closed, potentially paving the way for a relief bounce in Bitcoin’s price. Other experts like Michael van de Poppe and Titan of Crypto also shared the sentiment that with the CME gap filled, Bitcoin could see a significant bounce, potentially rising to $72,000 on its next leg up.
Apart from the CME gap, selling pressure on Bitcoin from different sources is also contributing to the price decline. Data from Farside Investors showed that Spot Bitcoin ETFs are experiencing massive net outflows, with fund issuers selling BTC holdings to meet redemptions. Additionally, the German government is still selling its Bitcoin holdings, and concerns arise about the selling pressure once Mt. Gox repays its creditors with $9 billion worth of crypto.
As of the latest data, Bitcoin is currently trading around $58,600, marking over a 3% decrease in the last 24 hours according to CoinMarketCap. Despite the recent challenges, analysts remain hopeful for a relief bounce in Bitcoin’s price following the closure of the CME gap. The overall sentiment in the market suggests that Bitcoin could potentially rebound and reach higher levels in the near future.
