Bitcoin (BTC) Creates New Massive CME Gap, Raising Concerns of Another Pullback to the Low $80,000s

According to an X post by crypto analyst Rekt Capital, BTC filled two key CME gaps over the weekend – one between $78,000 and $80700, and another between $92800 and $94000.

Bitcoin (BTC) managed to recover most of its losses over the weekend, tumbling as low as $78,258 on February 28, but the premier cryptocurrency has created a massive new Chicago Mercantile Exchange (CME) gap. This may raise concerns that the digital asset may witness another pullback to the low $80,000 level.

BTC filled two key CME gaps over the weekend, one between $78,000 and $80,700, and another between $92,800 and $94,000, crypto analyst Rekt Capital noted in an X post.

The wide range of prices reflects the extreme volatility witnessed by the top cryptocurrency. As a result of this volatile price action, BTC has now created a new, massive CME gap between $84,650 and $93,300.

While the bottom may have been reached at $78,258 during the downside divergence, it does not necessarily mean that BTC won't revisit that price level.

For the uninitiated, a Bitcoin CME gap is the price difference between Bitcoin's closing price on the CME futures market and its opening price the next day, created because the CME closes over the weekend while the spot market continues to trade. Past data indicates that CME gaps often work as price magnets.

That said, even if BTC hits the lower end of the latest CME gap at $84,650, it would still constitute a higher low relative to Friday's low of $78,258.

As long as BTC holds the macro support at $93,500, "any short-term downside volatility will only present opportunities," Rekt Capital concluded.

Fellow crypto trader Merlijn The Trader remarked that "volatility is about to go parabolic" following the creation of the new massive CME gap.

According to data from Coinglass, heightened price volatility has already led to liquidations worth over $900 million in the past 24 hours.

Another crypto analyst, Will, noted that the general sentiment around BTC is too euphoric for a retest of a previous accumulation range. The analyst added that they are eyeing the mid $70,000 range to accumulate BTC.

While BTC currently trades close to the $90,000 level, analysts believe that the top digital currency by market cap could slip to $74,700.

Crypto analyst Ali Martinez recently highlighted that historically, BTC tends to rebound from long-term support levels, which currently sit in the mid $70,000 range.

In related news, Coinbase analysts remarked that BTC's price is struggling due to the absence of any major near-term positive catalysts. In particular, the recent Bybit hack and heightened macroeconomic uncertainties are likely contributing to BTC's woes.

On a positive note, spot Bitcoin exchange-traded funds (ETFs) are finally starting to see net inflows once again.

At press time, BTC is trading at $90,170, down 1.5% in the past 24 hours.