Bitcoin (BTC) began to show fresh signs of an impending correction on March 31 as BTC price action began to eat into last weekend’s CME futures gap.
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Up or down, CME futures gaps provide targets
The pair had ranged after failing to cement $48,000 as support earlier in the week, amid calls for a retest of lower levels as a necessary step after considerable gains.
At the time of writing, Bitcoin circled $46,700, having hit its lowest levels since the night of March 27.
A look at the CME futures chart showed that short-term price performance could have a downside target in the form of the “gap” left over from last weekend.
CME futures ended trading at around $44,650 on March 25, only to open on March 28 at $46,725.
The resulting “gap” could very well get “filled” based on historical precedent, meaning that Bitcoin would be in for a further $2,000 dip.
Popular Twitter account @CivEkonom, nonetheless, noted that a “stealthy” previous gap from last year between $52,000 and $54,000 also remained open.
“Gaps always get filled on The CME Bitcoin futures,” he commented.
Everything according to plan
The retest, meanwhile, fell into the short-term gameplan for some popular traders.
In an update on the day, Anbessa said that he likewise favored a return to the mid-$44,000 range, while only a deeper move would challenge his so far bullish perspective.
#Bitcoin Gameplan Update ✔️
Following green projection:
-Resistance hit after 27% bounce from channel support
– 360MA HTF target hit (slightly above)
– channel breakout
– green projection stays in tact if S/R flip above $44,333
-prefer retest, patience here @ resist pic.twitter.com/sjzUdeduF9
— AN₿ESSA (@Anbessa100) March 28, 2022
Cheaper coins would further favor the main buyer of late March, Blockchain protocol Terra, buy-ins from which reached 30,000 BTC on March 31.
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