After a period of heightened volatility, Bitcoin, the flagship crypto asset, appears to have found its footing, undergoing a surge back to the $94,000 price mark. BTC’s renewed upward movement has allowed it to close key price gaps, reflecting a bullish outlook for the asset.
CME Gap Finally Closes Following Bitcoin’s Price Recovery
Bitcoin’s current price upswing has recovered key resistance areas that previously halted its uptrend. Delving into BTC’s price action, Rekt Capital, a market expert and trader, highlighted that the asset has closed the price gap recently formed by its sharp decline last week.
The closing of this gap, a crucial technical event that traders keenly monitor, raises the possibility that BTC may have bottomed out and is preparing for further rise. According to the analyst, the flagship asset has officially closed its CME price gap between $92,800 and $94,000, signaling a potential shift in market sentiment.
While the CME gap has been closed, Rekt Capital noted that the development would not be displayed until later today. However, Bitcoin was able to narrow the CME gap between $78,000 and $80,700 as well as the 92,800 and $94,000 price range.
This gap closure is considered to be BTC’s largest one in its history. With this development, Bitcoin is at a crossroads as it may maintain this newfound upward momentum or enter into a consolidation phase.
It is important to note that even though BTC has closed the recent CME gap, it has formed another massive new gap. This gap is located between the $84,650 and $94,000 level. As the prices show growing momentum, the market awaits what comes next for the flagship asset.
BTC Drawdowns Offer A Good Buying Opportunity For Investors
BTC’s previous descent may have triggered uncertainty and fear within the community. However, on-chain metric data shared by crypto expert and investor Miles Deutscher shows that the decline presents a buying opportunity for investors and traders.
Analyzing Bitcoin’s recent drop, the crypto expert claims it is one of the largest in this current market cycle. He discovered his results after assessing the asset’s many pullbacks in this market cycle.
Recently, BTC witnessed a drawdown of about 28.5% from its peak to trough. Nonetheless, drawdowns between 20% and 30% have often presented great times to buy, even if only for a rebound.
With bullish developments like US President Donald Trump reiterating a Bitcoin Reserve in the country, optimism has returned to the market once again with investors buying more BTC. Bitcoin’s rebound is believed to be triggered by the spur caused by Trump’s declaration of an impending strategic BTC reserve. When the strategic reserve becomes a reality, many crypto analysts remain confident that BTC’s price will skyrocket to new highs.
Featured image from Adobe Stock, chart from Tradingview.com
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