Bitcoin (BTC) Nears Highly Anticipated CME Gap Close, Setting the Stage for a Rebound to $89,000

Bitcoin (BTC) is steadily approaching the highly anticipated Chicago Mercantile Exchange (CME) gap close, with price action aligning with

Bitcoin (BTC) is steadily approaching the highly anticipated Chicago Mercantile Exchange (CME) gap close, with price action aligning with analyst’s expectations of a move toward $83,000. As Bitcoin corrects from recent highs, a crypto analyst expects a rebound to come next. However, if key support fails, the possibility of further downside remains.

Bitcoin To Drop To CME Gap Close

Bitcoin has been on a rollercoaster this year, skyrocketing to new ATHs and experiencing major price breakdowns that pushed it to new lows. Recently the cryptocurrency saw a surge toward $89,000 but faced a rejection. Now the top crypto is pulling back again, with crypto analyst Astronomer on X (formerly Twitter) pinpointing the $83,000 – $84,000 low range as its next critical support level.

This crucial support zone in the price chart aligns with the CME gap close, a common phenomenon in the BTC Futures market. BTC revisits price gaps left when the CME price closes over the weekend and opens on Sundays.

Astronomer has outlined his long-term trading plan for Bitcoin, expecting the cryptocurrency to consolidate around the support level before bouncing. He believes that the CME gap close is a significant technical development that could determine Bitcoin's price movements.

"My plan is to play out the CME gap close at 83-84k, then expect Bitcoin to consolidate before bouncing. If we close below 81.4-82.4k, expect another leg down to the 78.6 Fibonacci level."

Supporting the expectations of a short-term pullback, historically, a bearish close on Friday often leads to red Mondays or Tuesdays for Bitcoin. Moreover, the analyst highlights that the market is still in the pre-New York Open (NYO) phase, leaving room for an intraday reversal.

However, he anticipates a late-night drop during the NYO trading session due to the lack of liquidations and untested support levels. He also mentions that combined with these factors, Bitcoin's recent pullback from $89,000 is a strong indication that its price may not be bullish locally.

Based on his Bitcoin price chart, Astronomer considers the $81,400 – $82,400 range the worst-case support zone. Bitcoin is expected to revisit this target zone before any attempt at a potential reversal.

Can Bitcoin Rebound? Take Profit Levels To Watch

While Bitcoin's short-term price action appears bearish, its macro trend remains somewhat stable, according to Astronomer's analysis. The analyst has marked a "long entry" zone in the chart, suggesting that the $83,000 – $84,000 zone was a potential buying opportunity if Bitcoin finds support there.

The analyst predicts that if Bitcoin can successfully hold the CME gap close, a bounce toward the weekly open price at $86,000 could be its first step toward a much-anticipated recovery. Beyond this, the analyst has pinpointed key take profit levels marked from TP1 – TP4 on the price chart. These levels suggest that Bitcoin could surge higher to reach a target of $87,000 – $88,000.

However, a break below the worst-case support zone could trigger a bearish shift in sentiment, potentially leading to a deeper price correction for Bitcoin.