FameEX Hot Topics | As BTC Falls 2.5%, Market Eyes CME Futures Gap as Critical Level; $100K Outlook in Jeopardy

Bitcoin’s price dropped 2.5% on Tuesday, reaching around $107,460, as it moved to close the latest weekend CME futures gap, per TradingView data. The decline came after the BTC/USD pair failed to sustain an early-week recovery, halting short of fully filling the gap in CME Group’s Bitcoin futures market. These gaps form due to price volatility over the weekend when futures markets are closed, creating a discrepancy between Friday’s closing price and Monday’s opening. Traders noted that such gaps often act as a pull for prices, drawing them back to the unfilled range. However, concerns are mounting that Bitcoin could struggle to hold $100,000 as a support level if downward pressure persists.

The mechanics of CME futures gaps stem from Bitcoin’s 24/7 trading on spot markets, contrasted with the futures market’s weekend closure. This leads to a gap between the closing price on Friday and the opening price on Monday. Historically, the market tends to “fill” these gaps by revisiting the price range, often within a short timeframe. The current gap sits near $107,390, and Tuesday’s dip brought Bitcoin close but not fully into this zone. Last week, a more significant gap at $110,000, left from late September, was closed during a market sell-off that pushed Bitcoin futures to a low of $103,750, highlighting the market’s volatility.

Trader Daan Crypto Trades commented on X that while part of the latest CME gap was addressed, a small portion remains open. He advised traders to monitor price action near this level, as failure to close the gap could signal weakness. Daan stressed that $107,000 is a critical support for bulls to defend. A drop toward last Friday’s low of $103,750, he noted, would indicate significant bearish momentum. His analysis underscores the cautious sentiment among traders as Bitcoin struggles to find a stable footing after recent volatility.

Other traders are preparing for further declines, with $100,000 emerging as a key psychological and technical level. Trader Roman expressed doubts about Monday’s rebound, pointing to insufficient trading volume to support a sustained recovery. “Didn’t trust the low volume ‘breakout’ as volume never validated a true reclaim of support. 100-98k here we come!” he wrote on X. Crypto investor Ted Pillows echoed this sentiment, warning that a failure to hold the $107,000-$108,000 range could lead to a drop toward $100,000, raising fears of a broader market correction.

Bitcoin is currently at a critical juncture, testing the $107,000-$108,000 support zone. If this level holds, bulls could push for a rebound, potentially stabilizing the market. However, a break below this range could accelerate a decline toward $100,000, a level many traders see as vulnerable. The coming days will be pivotal in determining whether Bitcoin can regain bullish momentum or succumb to further bearish pressure, potentially reshaping market sentiment.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.