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.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Up or down, CME futures gaps provide targets
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD abruptly spiking down by $1,000 in minutes on Bitstamp after Thursday’s Wall Street open.
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 last Friday, only to open on Monday 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.
CME Group Bitcoin futures 1-day candle chart. Source: TradingView
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 Now: – 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 Thursday.
Cross-crypto sentiment meanwhile also continued to adjust down, the Crypto Fear & Greed Index having hit “greed” territory for the first time in 2022.
Crypto Fear & Greed Index (screenshot). Source: Alternative.me
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