- Bitcoin experienced a sharp decline, falling below $60K, with analysts predicting a potential recovery due to a CME gap.
- Whale activity has increased despite the price drop, indicating strong market interest and possible bullish momentum.
Bitcoin [BTC] has experienced a sudden and significant drop in the past 24 hours, surprising many in the crypto community.
After briefly trading above $63,000 in the early hours of the previous day, Bitcoin saw a sharp decline, dropping by over 6% to touch the $57,000 region.
Although the cryptocurrency has since rebounded slightly, now trading at $59,103, it remained down by 5.7% over the past day.
This bearish price action has sparked widespread discussion among analysts and traders, who are now re-evaluating their short-term outlooks for the digital asset.
Quick recovery ahead?
The unexpected drop has led several prominent analysts to share their updated perspectives on Bitcoin’s future trajectory.
One such analyst, Titan of Crypto, took to X (formerly Twitter) to suggest that Bitcoin might recover quickly to the $61,000 region.
Source: Titan of Crypto on X
Titan of Crypto pointed out the emergence of a CME Futures gap on the daily timeframe, stating,
“Bitcoin Short-Term Update. A CME futures gap has appeared on the daily timeframe. BTC might pull back to around $61,400 to fill it.”
A CME Futures gap occurs when the price of Bitcoin on the Chicago Mercantile Exchange (CME) opens at a significantly different level than where it closed in the previous trading session.
This gap is often seen as a key indicator by traders, who believe that Bitcoin tends to “fill” these gaps by moving back to the level where the gap originated.
In this context, Titan of Crypto’s analysis suggested that Bitcoin may rise to around $61,400 to close this gap, providing a potential short-term recovery opportunity.
However, other analysts have adopted a more cautious approach in response to the current price decline.
Moustache, another well-known figure in the crypto space, urged calmness by drawing parallels between the current market situation and past events.
Moustache shared two images comparing Bitcoin’s price chart from 2020, when the cryptocurrency experienced a sharp decline before a significant rally, with the current price action following the Japan stock market crash in 2024.
Source: Moustache/X
Moustache commented,
“Covid crash 2020 vs. Japan stock market crash 2024. No need to worry here imo. BTC continues to copy the fractal from 2020 almost 1:1.”
Bitcoin’s fundamentals show mixed signals
Despite the ongoing volatility, Bitcoin’s fundamentals offered some insights into the asset’s potential direction.
Data from Coinglass revealed an interesting trend in Bitcoin’s Open Interest, which has declined by nearly 7% over the past day, reaching a press time valuation of $31.02 billion.
Source: Coinglass
However, the asset’s Open Interest volume told a different story, with a substantial increase of 62.93% to a press time valuation of $83.73 billion during the same period.
This divergence between Open Interest and volume suggested that while fewer traders were holding positions, the intensity and size of the trades have significantly increased.
This indicated heightened market activity that could lead to further price fluctuations.
Moreover, data from IntoTheBlock showed a notable increase in Bitcoin whale transactions, specifically those greater than $100,000, over the past week.
Despite the recent price decline, whales—large holders of Bitcoin—appeared to be accumulating more of the asset.
Source: IntoTheBlock
Read Bitcoin’s [BTC] Price Prediction 2024–2025
The number of whale transactions has also risen from below 13,000 over the weekend to over 17,000 as of press time.
This increase in whale activity suggested that significant players in the market may be positioning themselves for a potential upward move, even amid the current bearish trend.
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