- Bitcoin rebounded from a dip to $49,200, reigniting investor interest.
- BTC is trading at $59,688, a 6.15% increase in the last 24 hours.
- Analyst noted Bitcoin’s dip below $50,000 swept up remaining liquidity.
- A small CME Gap between $53,700 and $54,600 could be filled soon.
Bitcoin (BTC) again proved its resilience amidst market fluctuations. Following a drop to $49,200, a recent low that sent ripples of concern through the crypto community, BTC has made an impressive comeback. This rebound has successfully reignited interest from investors and has set BTC moving up again. However, it would be careful to note that even though positive momentum was gathered, BTC still lost nearly 5% in the past week.
As of the latest data, BTC is trading at $59,688. This marks a significant 6.15% increase in the last 24 hours alone. The volume traded over the last 24 hours stands at a robust $111.24 billion, reflecting the heightened activity and interest enclosing BTC. With a market capitalization of $1.18T, BTC perpetuates dominance in the crypto market; it has a market dominance of 56.16%.
Bitcoin Sweeps Liquidity Below $50K: Is $54K the Next Target?
Crypto analyst Daan Crypto Trades pointed out recently that Bitcoin was able to sweep up remaining liquidity below and plunged to levels just under $50,000. This deep dive indicates not only intense activity in the market but also serves to underscore such as BTC navigates a landscape rife with potential volatility
For the entire year, the $70,000 to $72,000 range has been a critical area of interest for traders and investors alike. However, Daan notes that Bitcoin is currently far from any major liquidity clusters, which serve as areas where large amounts of buy or sell orders typically accumulate.
These clusters can often act as magnets for price, drawing it towards them. Yet, as BTC begins to consolidate around its current levels, new liquidity clusters are expected to form, potentially guiding the next big move. Adding to the technical landscape, another prominent analyst Rekt Capital, has brought attention to a smaller, but noteworthy CME Gap.
In case you are not aware, CME Gaps occur any time that the Bitcoin futures on the Chicago Mercantile Exchange close at one price and then reopen at another, thus creating a “gap” on the chart. Historically, Bitcoin has shown a tendency to fill these gaps
Currently, Bitcoin would need to drop about 3.5% from its current levels to fill the latest CME Gap. This gap lies between $53,700 and $54,600; while relatively minor compared to previous ones, it’s close enough to Bitcoin’s current price that it becomes a point of interest.
Rekt Capital pointed out that it might be more strategic for Bitcoin to fill this gap now, while the price is close, as opposed to later on creating a more disruptive move higher if Bitcoin is trading at higher levels and leaves the gap unfilled.
Technically, this could simply be a volatile daily retest of the $55,800 support, which represents the lows of early July based on the candle-bodied patterns observed on the charts. However, the question remains whether this CME Gap needs to be filled at all, given its relative insignificance compared to larger gaps in the past.
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