After a Slight Pullback, Bitcoin Price is Ready for a Bounce-Here’s Where it May Lead!
The past weekend was pretty bearish for the Bitcoin price rally as the token plunged below $94,000 after recording a bearish weekend. The rise to the local high of $97,895 attracted significant bearish attention, but the volume remains restricted within a range. This suggests the bulls remain passive but are offering enough support at $94,000 that may uplift the tokens within the bullish range in a short while from now.
Breaking the $95,000 support range was assumed to drag the BTC price to $92,000, but the ongoing price action suggests massive strength of the bulls. Hence, a rebound seems inevitable!
The Bitcoin price is known to fill the CME gaps, which have been formed around the current price levels. The lower gaps usually trigger a strong pullback, while the gaps at the upper levels push the token higher. However, the price faces a reversal after filling the gaps. The current trade set-up shows a gap on either side of the price, keeping the upcoming price action in an ambiguous state.
Currently, two gaps have been formed close to the current price, one between $96,400 & $97,600 and the other between $92,500 & $91,700. If the bullish trend is in place, the BTC price may focus on filling in the lower gap first, which may be accompanied by a massive bullish rebound. This suggests the price could be primed to drop below $92,000, which could be the local bottom of the persisting pullback.
Meanwhile, a volatile week ahead with FOMC and Coinbase earnings scheduled later this week. Therefore, if the price triggers a long trade, it may reach the local highs at $98,000, where we can see some LTF liquidations after a reclaim of the previous range highs. However, the BTC OBV daily trend remains bullish. Therefore, as long as this remains the case, the pullback may not be too deep.
Hence, it would be interesting to watch which CME gap the Bitcoin price chooses to close first, as the price action that follows may be dependent on this.
