Bitcoin (BTC) is steadily inching closer to the highly anticipated Chicago Mercantile Exchange (CME) gap close, with price movement aligning with analysts’ forecasts predicting a rise to $83,000. As Bitcoin undergoes a correction from its recent highs, a crypto analyst foresees a forthcoming rebound. However, if key support levels crumble, the chance of additional downside remains.
Bitcoin Set to Drop Toward CME Gap Close
This year, Bitcoin has been on an unpredictable journey, soaring to new all-time highs before experiencing major price drops, leading to new lows. The cryptocurrency recently surged to around $89,000 but encountered resistance. Now, the leading crypto asset is retracing, with analyst Astronomer on X (formerly Twitter) identifying the $83,000 – $84,000 range as a critical support level.
This vital support area on the price chart coincides with the CME gap close, a typical occurrence in the BTC Futures market. BTC tends to revisit price gaps that are created when the CME closes over the weekend and reopens on Sundays.
Astronomer has articulated a long-term trading strategy for Bitcoin, anticipating the cryptocurrency to consolidate around the support level before experiencing a rebound. He believes that the CME gap close is a pivotal technical event that could influence Bitcoin’s price trajectory.
Supporting the expectation of a short-term pullback, historically, a bearish Friday close often precedes red Mondays or Tuesdays for Bitcoin. Additionally, the analyst notes that the market is still in the pre-New York Open (NYO) phase, allowing room for an intraday reversal.
Nonetheless, he predicts a late-night drop during the NYO trading session due to low liquidation levels and untested support zones. He indicates that combined with these elements, Bitcoin’s recent retreat from $89,000 suggests that its price may not exhibit bullish behavior in the short term.
According to his Bitcoin price chart, Astronomer identifies the $81,400 – $82,400 range as the worst-case support zone. Bitcoin is projected to revisit this target area before making any attempts at a potential reversal.
Will Bitcoin Bounce Back? Key Profit Levels to Monitor
Although Bitcoin’s short-term price movements appear bearish, its overarching trend remains relatively stable, according to Astronomer’s analysis. The analyst has highlighted a “long entry” zone in the chart, suggesting that the $83,000 – $84,000 area could present a viable buying opportunity if Bitcoin manages to find support there.
The analyst forecasts that if Bitcoin holds the CME gap close, a bounce back toward the weekly opening price at $86,000 could be the initial step towards a long-awaited recovery. Beyond that, the analyst has identified crucial take profit levels designated TP1 – TP4 on the price chart, indicating that Bitcoin might ascend higher to target a range of $87,000 – $88,000.
However, a breach below the worst-case support zone could indicate a shift towards a bearish sentiment, potentially resulting in a deeper correction for Bitcoin.
Featured image from Gemini Imagen, chart from TradingView
