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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.
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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.
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.
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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.
Featured image from Gemini Imagen, chart from TradingView