Bitcoin (BTC) experienced a rebound at the start of the week, reaching $114,000 during Monday's Wall Street opening. However, traders remain cautious due to a new "gap" in the CME Group's Bitcoin futures market that opened around $110,000.
CME Gap and Potential Retracement The CME gap is the difference between Bitcoin's prices when the CME market closed on Friday and when it reopened on Sunday. The gap between $110,990 and $111,355 is caused by weekend Bitcoin moves. Historically, these gaps tend to act as price "magnets," attracting the market to fill them. Crypto investor Ted Pillows noted that Bitcoin has filled every CME gap in the last four months, suggesting this one will likely be filled as well. Nic Puckrin, CEO of Coin Bureau, suggested that closing this gap would be ideal for a clean move higher later in the week. To fill the gap, BTC/USD would need to break through a mass of bid liquidity around $111,000.
Technical Analysis and Potential Support Levels Bitcoin's recent price action shows it producing a lower high around $110,000, signaling a potential reversal. A break below $100,000 could trigger a drop to $93,024, or to the CME gap between $92,730 and $91,980. A potential buy zone could be the 61.8% Fibonacci level between $90,000 and $88,000. Key support levels to watch are around $107,000 and $102,000, while resistance levels are near $117,000 and $123,000.
Market Sentiment and "Uptober" Despite the CME gap-related concerns, some analysts anticipate a positive "Uptober" for crypto. Historically, October has been Bitcoin's second-best performing month, with an average return of 22%. For Bitcoin to break out of its current $110,000 to $120,000 trading range, volatility and positive sentiment need to return.
Recent Market Activity Bitcoin dropped below $109,000 last week, hitting its lowest level in a month. The sell-off started when over $1.5 billion in leveraged-long positions were liquidated. However, large investors ("whales") have stepped up buying, helping to stabilize prices. The mood was further impacted by a $22 billion crypto options expiry.
Altcoin Performance Most altcoins also rebounded, but traded in tight ranges. Ethereum (ETH) rose 2.4% to $4,102.83, while XRP gained 2.2% to $2.85. Solana climbed 3.5%, Cardano rose 3.1%, and Polygon added 1.2%.
Other Factors Broader market sentiment remains cautious as investors monitor political developments in Washington. U.S. lawmakers have until Sept. 30 to approve funding and avert a government shutdown, which could create uncertainty in financial markets. US-listed spot Bitcoin ETFs recorded over $900 million in outflows, marking a break from a four-week streak of inflows.
