A dramatic reversal on January 4 saw BTC/USD rapidly fill the latest CME futures gap before it bounced off predicted levels below $28,000. The crypto lost the $30K support rapidly as all-time highs took a break as rapid retracement totaled thousands of dollars.
Data acquired from Coin360 and TradingView showed BTC/USD shedding over 12% in just one hour. This pullback gathered momentum after a choppy trading session overnight with the altcoins surging to take a bigger slice of bitcoin’s market cap dominance.
At the time of writing, bitcoin has recovered from the lows of $27,700 and it is climbing towards $31,000.
Exchange activity is picking up with inflows surging dramatically on the day after many traders removed funds in the past week.
Venture Coinist podcast host Luke Martin summarized:
“Just woke up to the biggest $BTC dip we’ve had since breaking 20k. Down 20% from the peak….my brain is not used to 28k being a 20% drop though.”
CME Gap Gets Unexpected Instant Fill
The instant fills brought BTC in line with near-term forecasts from various markets analysts who pointed at a lower bound for Bitcoin.
One analyst said before major losses took hold:
“If we want to see some support zones on Bitcoin and expecting where we’re going to move from, the first area is around $29,600, the second area is around $27,600.”
Statistician Willy Woo was not surprised by the major pullback that happened on January 3. He said that only a severe occurrence could drop bitcoin to $24,000, which is the site of a ‘gap’ in bitcoin futures markets left from December.
In the meantime, the drop to $27,700 fills the gap created on CME Bitcoin futures markets over the past weekend; that is a classic move that had been absent from the previous weeks.