The price of Bitcoin fell below $90,000 on Thursday, thus closing one of the two open gaps in the CME futures markets. According to analysts, the digital asset could hit its lowest level of $88,000 in the next cycle if the last open gap remains unclosed.
Gap Analysis: One Filled, One Remaining
The Bitcoin futures market of CME Group had two gaps that were created during the turn of the year period. One gap has been closed as a result of the latest move in the price, which led to BTC/USD falling below $90,000.
Also Read: Bitcoin (BTC) Slips Below Key 50-Day EMA, Analysts Warn of $90K Retest
Key Support Levels Imply
Market participants are focusing on significant support levels such as the 21-day moving average (DMA) of $88,900. Michal van de Poppe remarks that Bitcoin momentarily went lower than this level, but staying above it would be a great sign.
Other support zones around $89,000 and $92,000 were also identified by trader Daan Crypto Trades.
Also Read: BTC Price Prediction: Strong Q1 Move Possible as BTC Approaches $90K Liquidity
Market Sentiment
The sentiment of the market is mixed; some analysts are optimistic about a rebound, but others are concerned about possible risks. CW, a CryptoQuant contributor, highlights that the outstanding gap is a risk, and closing it would be good for the uptrend.
To sum up, Bitcoin’s drop below $90,000 has led to the filling of one CME gap, and the remaining gap near $88,200 thus becomes a critical level to be aware of.
On the contrary, if the gap is not filled, that could be a sign of a bottom around $88,000 in the next cycle. Traders are still split on the sentiment, but those who focus on technicals are paying close attention to the support levels and gap analysis as indicators of the next move for the cryptocurrency.
Also Read: Bitcoin Faces Crowd FUD While BTC Dominance Signals Altseason Surge
