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Bitcoin retreats as CME futures gap draws focus
Bitcoin lost roughly 2.5% on Tuesday as BTC sellers pushed the price back toward a weekend-created CME futures gap. The pullback wiped out the early-week rebound and put renewed attention on key support levels around $107K — and the possibility that the $100,000 floor could give way if momentum and volume remain weak.
Price action and chart context
Data from trading platforms showed BTC/USD trading down to about $107,460 on Bitstamp before finding short-term footing. That move left Bitcoin trading near weekly lows, with market participants zeroing in on an open gap in CME Group’s Bitcoin futures, a common focal point for institutional flows.
BTC/USD one-hour chart
What is a CME futures gap and why it matters
CME futures gaps occur when the futures market closes and then reopens at a different price after weekend volatility. The price difference leaves a visible gap on hourly charts that markets often revisit — a process referred to as "filling the gap." Historically, these gaps can be filled within hours or over several days, and traders use them to anticipate potential short-term retracement targets.
CME Group Bitcoin futures one-hour chart
CME Group Bitcoin futures one-hour chart
Traders flag low volume as a warning sign
Several active traders warned that the recent rally lacked the volume needed to sustain higher highs. Low buying volume on the rebound undermines conviction, increasing the risk of another leg down. One analyst noted that although BTC closed the larger $110K gap left in late September, a smaller gap opened this week just below current prices and remains only partially filled.
Filling the present gap would imply a return to roughly $107,390, while last week’s deeper futures low reached around $103,750. Traders emphasized that bulls need to defend the $107K area to prevent further downside momentum.
Market voices: $100K support under threat
Some market participants are preparing for a test of the $100,000 psychological level. Observers argued the rebound’s limited volume was insufficient to confirm a true reclaim of higher support, suggesting a move toward $100–98K may be next if selling pressure resumes.
BTC/USDT four-hour chart
Other experienced traders outlined scenarios where losing the $107K–$108K band could prompt a drop toward $100K or even lower, with estimates ranging down to the mid-$90Ks in a more bearish outcome. The consensus view among these voices is that momentum and on-chain/institutional flows will determine whether Bitcoin holds its near-term floor or capitulates to a lower range.
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BTC/USDT perpetual contract one-day chart
Key takeaways for crypto traders and investors
- Watch CME gap levels closely: an unfilled gap near $107.4K acts as a potential draw for price retracements.
- Volume matters: low trading volume on rallies may signal a lack of conviction and increases the chance of reversal.
- Support to defend: bulls need to hold $107K–$108K to avert a short-term trip toward $100K or lower.
- Plan risk: traders should manage position sizing and use stop-loss strategies given the potential for swift gap fills and volatility.
As Bitcoin navigates these technical pressures, close attention to futures market behavior, on-chain flows, and trading volume will be essential for predicting whether the market will fill the open CME gap and if $100,000 will remain a reliable support level.
Source: cointelegraph
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