- Bitcoin’s CME Gap at $98,173 is set to expire soon, and traders expect it to close, influencing the next market move.
- Recent price action signals a shift from bearish to bullish, as Bitcoin forms higher highs and higher lows in the market.
- With Bitcoin testing $99,000 resistance, breaking this level could lead to a surge towards $100,000 and potentially $180,000.
A major shift in market structure is taking place in the Bitcoin market. At the weekend, a CME Gap was formed at the price of $98,173, and as a result of just a few hours left before the contract expires, traders are waiting for the gap to be filled or not. As an historical fact, CME Gaps are usually closed within several hours, no matter if the price goes up or down dramatically. This gap is anticipated to be bridged before the close of today or tomorrow to determine the direction of the market.
Source: Chart by CryptoRover
Trend Reversal in Bitcoin
The current movement of Bitcoin points toward the change in the market sentiment. Following the bear market with lower lows and lower highs, BTC has begun to make higher highs and higher lows. This structural shift is an indication of a possible trend reversal, which means the market has shifted from bearish to bullish. If Bitcoin is able to make successive higher lows, then it will definitely remain bullish. Nevertheless, if the market retrace and create a lower low, the trend may turn bearish again very fast. Until this structure is broken, BTC is likely to keep on climbing in the short term.
Source: Chart by CryptoRover
The price of Bitcoin is now trading close to a major resistance at $99,000. This level has been a major point of resistance, as the price of BTC has been turned away twice in the last two days. Once Bitcoin surpasses this level of resistance it could easily surge to $100,000. Reaching $100 000 could create even more optimism among the investors psychologically. However, to maintain this bullish market structure, BTC needs to hold a strong level of support over this resistance. Experts are watching these important levels as a breakout may propel BTC to $180,000.
Besides, the technical analysis there are some encouraging factors from the general market. Institutions keep on buying Bitcoins while exchange reserves are at their lowest in more than eight years. This indicates that the long term holders of BTC have a believe in the future prospects of the digital currency. Some of these holders bought Bitcoin during the market downturn in 2023 and 2024 and are now merely waiting for the market to recover. This long term accumulation phase normally ventures in line with bullish trends.
Ethereum Poised for Breakout
The market is also indicating that Bitcoin is losing its grip on the market in the same manner. This shift could lead to an altcoin season which means other coins such as Ethereum could also gain. ETH has displayed positive trend in the recent past with its MACD suggesting a possible break out Earlier, such signals have given rise to large scale price rises in altcoins. This is because Ethereum has been strong lately, while BTC has the potential of further appreciation in the coming weeks.
Source: Chart by CryptoRover
As the CME Gap is due to close and important resistances are in place, the next move of Bitcoin will be decisive. In the next several hours, the market may see a lot of fluctuations, and traders are ready for the breakdown or the reversal. The next few days are going to be crucial in determining the course of this currency in the future.
