Bitcoin's Journey to $83,000: Will the CME Gap Close Spark a Rebound?

Bitcoin (BTC) is steadily approaching the highly anticipated Chicago Mercantile Exchange (CME) gap close, with price action aligning with analysts' expectations of a move toward $83,000. As Bitcoin corrects from recent highs, a crypto analyst expects a rebound to follow. However, if key support levels fail, further downside could be on the horizon.

Bitcoin To Drop To CME Gap Close
Bitcoin has had a tumultuous year, reaching new all-time highs (ATHs) and experiencing significant price breakdowns. Recently, the cryptocurrency surged toward $89,000 but faced rejection. The top crypto is now pulling back again, with analyst Astronomer on X (formerly Twitter) identifying the $83,000 - $84,000 range as a critical support level.

This vital support zone aligns with the CME gap close, a common occurrence in the BTC Futures market where BTC revisits price gaps left when the CME price closes over the weekend and opens on Sundays.

Astronomer has outlined a long-term trading plan for Bitcoin, expecting the cryptocurrency to consolidate around this support level before bouncing back. He believes that the CME gap close is a significant technical development that could influence Bitcoin’s price movements.
Supporting the expectations of a short-term pullback, historically, a bearish close on Friday often leads to red Mondays or Tuesdays for Bitcoin. The analyst emphasizes that the market is still in the pre-New York Open (NYO) phase, allowing for potential intraday reversals.
However, he predicts a late-night drop during the NYO trading session due to low liquidations and untested support levels. Combined with these factors, Bitcoin’s recent pullback from $89,000 suggests that its price may not be bullish in the short term.

Based on his Bitcoin price chart, Astronomer considers the $81,400 - $82,400 range as the worst-case support zone. Bitcoin is expected to revisit this target zone before any attempt at a potential recovery.

Can Bitcoin Rebound? Take Profit Levels To Watch
While Bitcoin’s short-term price action appears bearish, its macro trend remains relatively stable according to Astronomer’s analysis. He has marked a “long entry” zone in the chart, indicating the $83,000 - $84,000 area as a potential buying opportunity if Bitcoin finds support there.
The analyst predicts that if Bitcoin can hold the CME gap close, a bounce toward the weekly open price at $86,000 could be the first step toward a much-anticipated recovery. He has also identified key take profit levels marked from TP1 - TP4 on the price chart, suggesting Bitcoin could surge to a target of $87,000 - $88,000.

However, a break below the worst-case support zone could trigger a bearish sentiment shift, potentially leading to a deeper price correction.

Featured image from Gemini Imagen, chart from TradingView