Bitcoin price is hovering within a closed range for the past month with the resistance at around $32,500 and support levels at $28,800. With no signs of a strong recovery or a breakout any time in the near future, BTC prices are expected to continue consolidating within a narrow range.
But what is compelling the prices to stick around $30,000? Are the institutions playing around or is the CME gap between $36,065 and $34,455 restricting the upward price action?
The markets crashed significantly in the first few days of May and just before the crash, a huge CME gap was created. In a bear market, traders do expect the BTC price to slump hard to fill the CME gaps, which further ignites a strong rebound. And hence currently, when the gaps are at the higher end, the prices are required to fill the first to set out the next plan of action.
As seen in the above chart, the Bitcoin price is following a narrow, slightly elevated consolidation within a parallel channel. With a breakout from the channel, the price could immediately fill the CME gap Bitcoin, which previously has filled the lower gaps by plunging significantly and further appreciated significantly. However, in a diverse situation like this, when the gaps are higher, the possibility of the asset being depreciated heavily emerges.
This may not only be the only reason why market makers are restricting the Bitcoin price rise higher but could be the major one.
With the growing uncertainty, the trader’s confidence may also have trembled a bit which causes them to extract their profits with a minimum jump from the lower support.
Therefore, the bear market could extend more as the BTC price higher target currently appears to be capped below a crucial CME gap.
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Source: https://coinpedia.org/bitcoin/is-the-cme-gap-hindering-the-bitcoin-btc-price-rally-beyond-32000/