Is a Correction Approaching in Bitcoin Price? CME Gap Raises Concerns Among Investors!

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• Bitcoin price surged above $44,000 with the influence of significant purchases from retail and institutional investors, and open positions continue to increase.
• Popular analyst Willy Woo stated in a post published on X that there is a Bitcoin CME gap at $39,700 that needs to be filled.
• CME Bitcoin futures open positions have decreased by almost 1% in the last 24 hours, maintaining an open position of over $5 billion.

Bitcoin price is holding above $43,000, but the CME gap is causing concerns among investors: Here are the details!

A Correction in Bitcoin Price Might be Approaching

Bitcoin price climbed above $44,000 with the impact of significant purchases from retail and institutional investors, and open positions continue to rise. Traders and analysts are now anticipating a move above $45,000 and a rally towards $50,000. However, a popular analyst drew attention to a Chicago Mercantile Exchange (CME) Bitcoin gap at $39,700.

Since CME has become the largest Bitcoin futures exchange, surpassing Binance, CME’s open positions and other data hold significant importance in determining BTC price movements. Popular analyst Willy Woo stated in a post published on X that there is a Bitcoin CME gap at $39,700 that needs to be filled. This implies that BTC price should drop to $39,700 before starting another rally.

“By my count, 28 out of 30 gaps on CME daily candles are filled (93%). The remaining unfilled gap can be seen in the bottom left corner of this chart.”

On the daily timeframe, Bitcoin appears to be pulling back from the local peak of $44,408. The community rejects the CME Bitcoin narrative due to the recent rally and positive sentiment, while the Fear and Greed Index is currently in an overgreedy situation.

Additionally, CME Bitcoin futures open positions decreased by almost 1% in the last 24 hours, maintaining an open position of over $5 billion. OI for BTC futures on Binance also slightly decreased, but it still increased by 1% in the last 24 hours.

Is BTC Price Facing a Risk of Decline?

According to the Bitcoin CME gap, BTC price could drop by up to 10%. This would provide investors an opportunity to buy the dip before another rally, driven by the hype around the spot Bitcoin ETF and the Federal Reserve’s dovish stance. COINOTAG reported that Bitcoin options traders expect the BTC price to touch $50,000 by the end of January 2024.

BTC price is currently trading at $43,770, erasing gains from a few hours ago. The 24-hour lows and highs are $43,627 and $44,361, respectively. Additionally, trading volume has decreased by 32% in the last 24 hours, indicating reduced interest among traders.