Bitcoin (BTC) looked for cues near $90,000 on Wednesday as BTC price action hit a key target for a rebound.
Key points:
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Bitcoin price action drops to fill a CME futures gap created at the yearly open.
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A modest bounce is not enough to convince traders that the worst is over.
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Gold continues to hit record highs while Bitcoin gives up January gains.
BTC price “not looking strong” after gap-fill
Data from TradingView showed Bitcoin up 1.1% on the day after a trip to $87,800.
BTC/USD four-hour chart. Source: Cointelegraph/TradingVIewThat move marked the lowest levels since the start of January, with BTC/USD erasing more than $10,000 of gains versus month-to-date highs.
It also meant that the pair filled an open “gap” in CME Group’s Bitcoin futures market from the yearly open.
As Cointelegraph reported, such gaps often act as short-term price targets, with the market returning to them within days or even hours.
With the remaining gaps above spot price, traders still had mixed opinions about market strength.
“A rapid rise is expected,” trader CW told X followers, having said that the gap-fill was needed to ensure a “stable rally.”
Trader Jelle, meanwhile, became increasingly bearish, eyeing a retest of a downward-sloping trendline on the daily chart after an initial breakout.
“Higher high immediately followed by a lower low,” he summarized.
BTC/USD one-day chart. Source: Jelle/XBitcoin investors in “capital preservation” mode
Ahead of the Wall Street open, macro factors continued to play a major part in crypto market analysis.
Related: BTC vs. new $80K ‘liquidity grab’: Five things to know in Bitcoin this week
In its latest Asia Color market update on the day, trading company QCP Capital described Bitcoin as “trading like a high-beta risk asset, highly sensitive to rates, geopolitics, and cross-market volatility.”
“Until clearer policy signals emerge, crypto is likely to stay reactive rather than directional,” it concluded.
XAU/USD one-day chart. Source: Cointelegraph/TradingViewTraditional hedge gold continued to outperform, seeing yet another all-time high of $4,888 per ounce on the day.
“We are all witnessing history right now,” trading resource The Kobeissi Letter reacted.
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