The Bitcoin price is struggling to recover from recent declines, as the market downtrend has kept it significantly below the $100,000 mark. Amidst this volatility, Bitcoin is experiencing a bearish deviation that is filling a new Chicago Mercantile (CME) Gap. This has triggered a fresh prediction from a crypto analyst who believes that the pioneer cryptocurrency is set for a higher high.

Bitcoin Price To Form Higher Low As CME Gap Fills

Crypto analyst Rekt Capital took to X (formerly Twitter) on Monday to share his projected outlook for the Bitcoin price. The analyst highlighted that Bitcoin is currently undergoing a bearish deviation, which is filling a massive gap on the CME futures chart.

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CME gaps are disparities between closing and opening prices in the Bitcoin futures market. They appear when Bitcoin’s price moves as the exchanges close over the weekend and reopen on weekdays. Over the past few days, Bitcoin has been filling its new CME gap amidst the broader market downturn. This downward move was expected, as the Bitcoin price often gravitates toward unfilled CME gaps before resuming regular activity.

Despite Bitcoin’s present bearish deviation, Rekt Capital believes that the downtrend could present an opportunity for the market to form new higher lows. The analyst shared two charts, with one revealing several resistance and support zones for the Bitcoin price. The orange and yellow boxes in the chart suggest strong support areas where Bitcoin has historically bounced, while the blue boxes highlight past resistance areas.

In the second chart, Rekt Capital showcases repeated breakout patterns, where BTC consolidates and then initiates a surge. If the cryptocurrency can make the expected higher low above last week’s low, this could confirm that Bitcoin’s broader uptrend may still be intact. Conversely, if it fails to hold above support levels and declines again, the market may see a more resounding crash, potentially triggering sell-offs and exacerbating the bearish trend. 

Analyst Foresees A Move Towards $95,000

Not too long ago, Bitcoin shocked the market, skyrocketing by more than 9% in one day and surging back above the $90,000 mark. According to X crypto analyst Jelle, this massive price surge was the higher low the market was anticipating.

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The analyst suggests that the surge has paved the way for BTC to build a more solid base and slowly make its way toward the $95,000 mark. While the price of BTC currently trades at $87,596 and faces bearish pressures that have triggered multiple price crashes, Jelle believes that the cryptocurrency can overturn bearish conditions and initiate a recovery. 

As of this writing, it appears Bitcoin may be slowly recovering from the bears. The cryptocurrency has surged by 5.3% in one day, and its market capitalization is also up by the same amount despite its declining trading volume.

Featured image from Unsplash, chart from Tradingview.com

The U.S. Securities and Exchange Commission’s (SEC) Wells notice to crypto exchange Coinbase worsened the investor sentiment on the country’s crypto ecosystem. That the notice came even after the exchange’s claims of multiple requests for comprehensive crypto regulation and clarity on laws shows the widening gap between crypto players and the regulators. Meanwhile, the ongoing banking crisis came as an advantage to the crypto market, which went bullish with the failure of the Silicon Valley Bank and Signature Bank.

Also Read: US Fed Prints $400 Billion, Bitcoin Price and Ethereum Set To Rally

Very recently, Cathie Wood, the CEO of Ark Invest, credited the decentralized, transparent, and auditable nature of crypto assets as against the centralized nature of banks.

Vacuum In US Crypto Ecosystem

Daniel Seifert, Vice President and Regional Managing Director for EMEA region at Coinbase, said he was impressed by what our international teams are shipping regularly in the crypto market. This is because the US regulatory scope is leaving a void in the country’s crypto businesses. Referring to the news of Circle choosing to have its European headquarters in France, Seifert highlighted that crypto companies are achieving global scale with product releases every week.

“We have observed how the US regulatory approach to crypto has been marked by regulation by enforcement. This approach has created an environment of uncertainty and instability in the crypto industry.”

He also showed an example of the UK government’s active efforts towards becoming a leading crypto hub. This is being led from the highest levels of the UK Government, from the Chancellor of the Exchequer, to the Economic Secretary, to the newly created Department of Science, Innovation and Technology, he explained in a blog.

Also Read: Nasdaq To Offer Crypto Custody Services Soon Despite Regulatory Burden

The SEC had on March 22 issued a Wells notice to Coinbase over doubts about the listed digital assets, their staking services, and other things.

Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Reach out to him at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

• Bitcoin price crashed last Friday as Silvergate Capital delayed filling a 10-K report 
• No bounce followed 
• For bulls to have a case, Bitcoin needs to hold support and break two resistance levels

Last Friday, Bitcoin price lost $1,400 on news that it delayed filling a 10-K report. The stock crashed over 30% and triggered massive selling in the cryptocurrency market.

Inevitably, Bitcoin price was hit, as doubts over Silvergate’s future scared investors in the cryptocurrency market. Investors, however, are used to Bitcoin’s volatility. For example, the price is down -47.5% in the last 12 months and up 32.74% YTD.

It means that the reaction to Silvergate’s announcement might be just part of the coin’s volatility. But the worrying fact is that the price did not bounce back as bulls would have wanted.

Curiously, Bitcoin led the stock market losses. It used to be the other way around – Bitcoin following the S&P 500 index’s price action, but now the roles changed.

While Bitcoin price dropped last Friday, the stock market continued its recent rally. The two diverged.

Only yesterday, stocks crashed too, as the Federal Reserve’s Chair, Jerome Powell, testified in front of the Senate on the monetary policy. He said that recent data favors a higher terminal rate; thus, more rate hikes are in the pipeline. As a result, stocks crashed, and the US dollar rallied.

When should bulls start buying Bitcoin?

Bitcoin may have rallied in 2023, but the recent price action is bearish. The market dropped after a contracting triangle acted as a reversal pattern in late February.

Next, a consolidation started, which resembles a bearish flag pattern. Silvergate’s stock price crash completed the pattern, as Bitcoin price reacted.

Will the neckline of an inverse head and shoulders pattern offer support?

BTCUSD chart by TradingView

If it does, then Bitcoin is still not out of the woods, as momentarily, bears are in control. For a bullish setup, Bitcoin price needs to do two things.

First, to break above the bearish trendline. But only that is not enough.

Second, it must climb above the previous lower high in the $24k area. Can it do that?

The only way to do so is for risk sentiment in financial markets to turn on. If that is the case, all eyes should be on the stock market as a bounce there would support Bitcoin’s rally.

On the flip side, a drop below the head of the inversed head and shoulders pattern would open the gates for further losses.