Bitcoin Stages Recovery, Eyes $114,000 Amidst Trader Caution
Bitcoin (BTC) demonstrated renewed upward momentum as trading commenced on Wall Street Monday. However, market participants are maintaining a watchful stance, concerned about a potential price retreat.
CME Gap Damps Enthusiasm for Bitcoin’s Rally
Data sourced from Cointelegraph Markets Pro and TradingView indicates that BTC/USD briefly reached $114,000, marking a daily increase exceeding 1.5%. This surge followed a surprising weekly close above $112,000, setting the stage for a robust trading session in Asia, where gold also achieved unprecedented highs.
Despite the positive price movement, a sense of unease prevails among traders. The emergence of a new “gap” in the CME Group’s Bitcoin futures market is a primary factor fueling expectations of a possible decline.
“$BTC currently exhibits a CME gap near the $110,000 mark,” noted crypto investor and entrepreneur Ted Pillows in a post on X. “Historically, Bitcoin has closed every CME gap within the last four months, suggesting a high probability of this gap being filled as well. Vigilance is advised.”
As previously reported by Cointelegraph, CME gaps often function as price “magnets,” compelling the market to converge towards them within varying timeframes ranging from weeks to hours.
Nic Puckrin, CEO and co-founder of the Coin Bureau crypto adoption platform, stated, “Ideally, a retracement and closure of this gap would pave the way for a sustainable upward trajectory this week.”
Addressing the gap would require BTC/USD to overcome a substantial volume of buy orders clustered around $111,000, as per data provided by CoinGlass.
Exchange order-book liquidity remains a key driver of market dynamics, with 24-hour cryptocurrency liquidations surpassing $400 million at the time of this report.
On Saturday, Keith Alan, co-founder of Material Indicators, a trading resource, characterized the liquidity above the current price as “paper thin” below $115,000.
He further anticipated increased volatility around the weekly and monthly closes on Sunday and Tuesday, respectively.
“Uptober” Potential Increases with Bitcoin’s Price
As gold experienced a period of consolidation following its earlier peak of $3,831 per ounce, Bitcoin mirrored the optimistic start to the week observed in US equity markets.
The S&P 500 and Nasdaq Composite Index recorded gains of 0.5% and 1%, respectively, at the time of this analysis.
QCP Capital, a trading firm, expressed optimism regarding the potential for a classic crypto “Uptober.”
“Volatility is declining, with expectations that it will continue to diminish as spot prices consolidate in anticipation of Friday’s US Non-Farm Payrolls data,” the firm stated in its latest “Asia Color” analysis. “Despite concerns surrounding potential delays to the NFP release due to a possible US government shutdown, markets appear relatively unaffected, supported by gains on Wall Street.”
QCP suggested that reclaiming the $115,000 level would “confirm a renewed uptrend.”
Disclaimer: This article is intended for informational purposes only and does not constitute investment advice. Trading and investing involve substantial risk, and readers should conduct their own thorough research before making any decisions.