Bitcoin(BTC) Price To Retest $44k Level With Large CME Futures Gap In Focus

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Bitcoin, Ethereum, and other cryptocurrencies are now trading just below their March highs, with encouraging news and a breakthrough in the Russia-Ukraine peace talks providing support.

However, throughout the European session on Wednesday, sentiment altered as a result of data showing inflation in certain eurozone countries approaching double digits, drawing markets’ focus back to the concern of rising pricing pressures.

BTC Price Action

The price of Bitcoin (BTC) appears to be hefty, as bulls failed to capitalize on Tuesday’s relief surge. Instead, they were rejected twice by the 200-day Simple Moving Average (SMA) at $48,413.27, and even a close above the monthly R1 at $47,851.97 was too much. With bullish sentiment waning, expect to see more profit-taking, which will set off a downward cycle.

As a result, the BTC price is likely to seek support, and bulls will need to intervene to prevent the rally from being halted. Expect a drop back to $45,261.84 or $44,088.73, based on the steepness of the move in the last several days.

Two previously identified levels have been difficult to break above in the past, so the present dip in price action would be a good test to see if they hold any support in return today.

Attention focuses on large CME futures gaps

A peek at the CME futures chart revealed that the “gap” left over from last weekend could be a negative target for short-term price performance. CME futures closed at roughly $44,650 on March 25, only to open at $46,725 on March 28.

Based on historical precedence, the resulting “gap” might very well be “filled,” putting Bitcoin at risk of another $2,000 drop.

Nonetheless, the popular Twitter account CivEkonom pointed out that a “stealthy” earlier difference between $52,000 and $54,000 from last year remained open.He said that on the CME Bitcoin futures, gaps are always filled.

Meanwhile, several popular traders used the retest as part of their short-term strategy.

Anbessa added in a daily report that he, too, favours a return to the mid-$44,000 range, with only a deeper move challenging his so far bullish outlook

Cheaper coins would benefit the largest late-March buyer, Blockchain protocol Terra, whose buy-ins hit 30,000 BTC on March 31.

Meanwhile, cross-crypto sentiment continued to deteriorate, with the Crypto Fear & Greed Index reaching “greed” territory for the first time in 2022.

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