Key points:
Bitcoin bounces back with a trip to $114,000 at the Wall Street open.
Traders remain wary of a retracement, especially thanks to a new weekend CME gap opening at $110,000.
Macro analysis sees good odds of another “Uptober” for crypto.
Bitcoin (BTC) continued its sudden rebound at Monday’s Wall Street open while traders stayed cautious.
CME gap cools excitement over Bitcoin rebound
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD hit $114,000 as daily gains surpassed 1.5%.
An unlikely weekly close above $112,000 set the pair up for a strong first Asia session, which also saw gold make new all-time highs.
As short-term BTC price action appeared to follow, traders were anything but relaxed. A new “gap” in CME Group’s Bitcoin futures market formed a key reason to expect lower levels.
“$BTC now has a CME gap around the $110,000 level,” crypto investor and entrepreneur Ted Pillows summarized in a post on X.
“Bitcoin has filled every CME gap in the last 4 months, so this could most likely get filled. Keep an eye on it.”
As Cointelegraph reported, CME gaps tend to act as price “magnets,” attracting the market to fill them within weeks, days or even hours.
“Ideally we come back & close this if we want a clean move higher this week,” Nic Puckrin, CEO and cofounder of crypto adoption platform Coin Bureau, argued.
To fill the gap, BTC/USD would need to slice through a new mass of bid liquidity centered on $111,000, according to data from CoinGlass.
Exchange order-book liquidity continued to drive momentum, with 24-hour crypto liquidations passing $400 million at the time of writing.
On Saturday, Keith Alan, co-founder of trading resource Material Indicators, called liquidity above price “paper thin” below $115,000.
“I especially expect things to get spicy around the Weekly Close on Sunday and continue into the Monthly close on Tuesday,” he predicted at the time.
”Uptober” odds flip with BTC price
As gold consolidated after its earlier high of $3,831 per ounce, Bitcoin followed a bullish start to the week for US stock markets.
Related: BTC price due for $108K ping pong: 5 things to know in Bitcoin this week
The S&P 500 and Nasdaq Composite Index were up by 0.5% and 1%, respectively, at the time of writing.
Commenting, trading company QCP Capital suggested that the outlook for a classic crypto “Uptober” was good.
“Vols are trending lower, with expectations that they will drift further as spot consolidates ahead of Friday’s US Non-Farm Payrolls,” it wrote in the latest edition of its “Asia Color” analysis series before the Wall Street open.
“While there are questions around whether NFP could be delayed if the US government shuts down, markets appear relatively unfazed, buoyed by Wall Street’s gains.”
QCP reasoned that $115,000 should be reclaimed to “confirm a renewed uptrend.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.