Bitcoin Faces Challenge Below as Price Dips by 2.5%, Concerns Mount Over $100K Support
Bitcoin's price has fallen by 2.5% amid impending challenges as it nears a critical futures gap. Traders express worries that the support at $100,000 might not hold.
Market Update
Key points:
- Bitcoin attempts to fill the latest weekend Bitcoin futures gap after giving up its rebound.
- Overall BTC price weakness comes amid low volume, traders warn.
- Price forecasts increasingly see a return to test $100,000 next.
Bitcoin (BTC) fell back to weekly lows on Tuesday with all eyes on an open “gap” in Bitcoin futures.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
Bitcoin Battles Its Latest CME Futures Gap
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dipping to $107,460 on Bitstamp.
Down 2.5% on the day, the pair failed to hold its early-week rebound but stopped short of “filling” the latest gap in CME Group’s Bitcoin futures market.
These gaps, created over weekends, result from futures closing at one price point and opening at another due to weekend price volatility. The market tends to “fill” the gap by returning to the space left between the open and closing levels, often within days or hours.
“$BTC Opened with a small CME gap below this week. Price did come down to close some of it, but there’s still a bit left. So good to keep that in mind if price were to trade close to it,” trader Daan Crypto Trades wrote on the topic in an X post.
“In addition, we closed the big gap at $110K last week. This was a gap that was left behind at the end of September before BTC rallied to new all-time highs.”
CME Group Bitcoin futures one-hour chart. Source: Daan Crypto Trades/X
Filling the gap on this occasion would mean a return to around $107,390. During last week’s market rout, Bitcoin futures dropped to a low of about $103,750.
“The bulls would want to hold $107K going forward,” Daan Crypto Trades said Monday.
“If this were to start grinding back down, and get close to last Friday’s wick, then that’d just show a lot of weakness to me.”
Traders See $100,000 BTC Price Support Failing
Some traders continued to prepare for new local lows, including the possibility of breaking down below the $100,000 support level.
Fellow trader Roman noted that Monday’s rebound lacked the volume needed to sustain further upside. “Didn’t trust the low volume ‘breakout’ as volume never validated a true reclaim of support. 100-98k here we come!” he told X followers.
BTC/USDT four-hour chart. Source: Roman/X
Crypto investor and entrepreneur Ted Pillows echoed a similar sentiment, indicating that if BTC fails to establish a floor, $100,000 will be in play.
“Overall I expect $100,000 to hit with a possible drop lower to $95,000,” trader Crypto Tony added, stressing his previous market predictions.
BTC/USDT perpetual contract one-day chart. Source: Crypto Tony/X
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
