Bitcoin Price Rebound: CME Gaps & Bullish Signals

Bitcoin (BTC) experienced a brief correction, dipping into the $70,000 range, but quickly rebounded, showing a 7.12% increase in the last 24 hours. Analysis suggests this could reverse the 19% monthly losses, especially if buying pressure continues.

CME Gaps: A Potential Catalyst for BTC Growth?

CME gaps, price discrepancies between closing and opening prices (due to weekend/holiday closures), often act as liquidity points. Prices frequently revert to fill these gaps. Bitcoin’s recent price action resembles its 2020 behavior, where a significant drop filled a CME gap before a substantial all-time high was reached.

After a 28.57% decline, BTC fell into a CME gap between $80,670 and $77,930. This gap acts as a potential demand level, suggesting further price increases are possible. Analysis indicates that a rebound from this level could push BTC towards a short-term target of $92,755 (another CME gap) and a long-term target exceeding the previous all-time high of $110,150 on the CME.

Source: TradingView

Source: TradingView

Multiple Bullish Indicators Emerge

Several bullish confluences support the potential for continued price increases.

• Increasing Long-Term Holders: The number of addresses holding BTC for over a year is rising, while those holding for shorter periods are decreasing. This suggests reduced short-term selling pressure and increased long-term accumulation. 39.26 million holder addresses have been recorded.

Source: IntoTheBlock

• Unspent Transaction Output (UTXO) Strength: Unspent transaction outputs show significant growth in recent transactions, indicating buying pressure. Transactions unmoved for less than a day surged 26.07% to 216,520 BTC, and those unmoved for up to a week increased 52.40% to 322,990 BTC. This suggests a preference for long-term holding.
• Rising Open Interest in Derivatives: Open interest in Bitcoin derivatives markets increased by 2.80% to $50.91 billion in 24 hours, reflecting increasing bullish sentiment.
• Positive Long-to-Short Ratio: The long-to-short ratio in the derivatives market is 1.0072, indicating a slight dominance of buyers. A further rise in this ratio would signal more buying activity and potential price increases.

Source: IntoTheBlock

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