Key points:
Bitcoin recovers to $114,000 at the start of Wall Street trading.
Traders remain cautious about a potential pullback, especially with a new CME gap opening at $110,000.
Macro analysis indicates favorable chances for another “Uptober” in the crypto market.
Bitcoin (BTC) continued its rapid recovery on Monday as Wall Street opened, while traders maintained a watchful stance.
CME gap dampens enthusiasm over Bitcoin recovery
Data from Cointelegraph Markets Pro and TradingView indicated that BTC/USD reached $114,000, with daily gains exceeding 1.5%.
An unexpected weekly close above $112,000 set the pair up for a promising first Asian session, coinciding with gold hitting new all-time highs.
Despite the favorable short-term BTC price movement, traders were anything but at ease. A new “gap” in the CME Group’s Bitcoin futures market established a significant reason to anticipate lower levels.
“$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 reported by Cointelegraph, CME gaps often act as price “magnets,” drawing the market to fill them within a timeframe ranging from weeks to mere hours.
“Ideally, we return and close this to facilitate a clean move higher this week,” argued Nic Puckrin, CEO and co-founder of crypto adoption platform Coin Bureau, argued.
To address the gap, BTC/USD would have to navigate through a new cluster of bid liquidity focused on $111,000, according to data from CoinGlass.
Exchange order-book liquidity remained a key driver of momentum, with 24-hour crypto liquidations exceeding $400 million at the time of writing.
On Saturday, Keith Alan, co-founder of trading resource Material Indicators, noted that liquidity above price was “paper thin” beneath $115,000.
“I especially expect activity to heat up around the Weekly Close on Sunday and continue into the Monthly close on Tuesday,” he predicted then.
”Uptober” prospects improve with BTC price
As gold consolidated after previously reaching $3,831 per ounce, Bitcoin mirrored a bullish start for US stock markets this week.
Related: BTC price poised for $108K fluctuation: 5 insights in Bitcoin this week
The S&P 500 and Nasdaq Composite Index increased by 0.5% and 1%, respectively, at the time of writing.
In analysis, trading firm QCP Capital asserted that the conditions for a classic crypto “Uptober” look promising.
“Volatility is trending down, with expectations that they will continue to decrease as spot consolidates ahead of Friday’s US Non-Farm Payrolls,” it noted in the latest edition of its “Asia Color” series before the Wall Street opening.
“While there are uncertainties regarding the potential delay of NFP if the US government shuts down, markets appear relatively unaffected, buoyed by Wall Street’s progress.”
QCP concluded that reclaiming $115,000 would be necessary 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.
