Main Highlights:
Bitcoin rebounds, reaching $114,000 at the Wall Street opening.
Traders are cautious regarding a potential retracement, particularly due to a newly opened CME gap at $110,000 over the weekend.
Macro insights suggest a favorable chance of another “Uptober” for cryptocurrencies.
Bitcoin (BTC) continued its abrupt recovery during Monday’s Wall Street opening, but traders remained on alert.
CME gap dampens enthusiasm for Bitcoin rise
Data from Cointelegraph Markets Pro and TradingView indicated that BTC/USD peaked at $114,000 with daily gains exceeding 1.5%.
An unlikely weekly closure above $112,000 positioned the pair for a strong initial Asian session, coinciding with gold reaching new all-time highs.
While short-term BTC price movements seemed to behave accordingly, traders were anything but at ease. A new “gap” in CME Group’s Bitcoin futures market was a significant factor keeping expectations low.
“$BTC now has a CME gap around the $110,000 level,” crypto investor and entrepreneur Ted Pillows noted 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 noted by Cointelegraph, CME gaps typically function as price “magnets,” drawing 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 the crypto adoption platform Coin Bureau, stated.
To address the gap, BTC/USD would need to navigate through a new layer of bid liquidity centered around $111,000, according to information from CoinGlass.
Exchange order-book liquidity continued to influence momentum, with 24-hour crypto liquidations exceeding $400 million as of this writing.
On Saturday, Keith Alan, co-founder of trading resource Material Indicators, described liquidity above the price as “paper thin” below $115,000.
“I especially expect things to heat up around the Weekly Close on Sunday and continuing into the Monthly close on Tuesday,” he forecasted at that time.
”Uptober” potential shifts alongside BTC price
As gold stabilized after its earlier peak of $3,831 per ounce, Bitcoin mirrored a positive start to the week for US stock markets.
Related: BTC price anticipated to ping pong around $108K: 5 key insights into Bitcoin this week
The S&P 500 and Nasdaq Composite Index were up by 0.5% and 1%, respectively, at the time of writing.
In comments, trading company QCP Capital expressed optimism regarding the prospects for a traditional crypto “Uptober.”
“Volatility is trending lower, with expectations that it will decline further as spot prices consolidate ahead of Friday’s US Non-Farm Payrolls,” it articulated in the latest entry of its “Asia Color” analysis series before the Wall Street opening.
“While there are concerns about the delay of NFP due to a potential US government shutdown, markets seem relatively unperturbed, buoyed by gains on Wall Street.”
QCP posited that reclaiming $115,000 is necessary to “confirm a renewed upward trend.”
This article does not constitute investment advice or recommendations. Every investment and trading action carries risk, and readers should conduct their own research before making decisions.
