Bitcoin Price Volatility

Bitcoin’s price exhibits extreme volatility, raising questions about whether BTC can surpass its accumulation level to hit $104K.

A notable price increase alongside new Bitcoin futures price gaps suggests the cryptocurrency may be poised for significant movement.

CME Gap and Potential Price Movements

Recent BTC futures developments created a new price gap between $84,650 and $94,000, leading analysts to speculate on future market patterns.

Bitcoin futures gaps act as market indicators for predicting future price movements. Analysts believe Bitcoin will revisit the gap’s range before continuing its uptrend.

Traders are focusing on the gap between $84,650 and $94,000, indicating that BTC might briefly return to these levels before bouncing back to new highs. With this gap and existing CME gaps between $78,000 to $80,700 and $92,800 to $94,000, BTC may encounter a volatile period.

Weekly Close Above $93,500 Signals Accumulation Phase

Another factor supporting the notion of Bitcoin’s accumulation phase is its weekly close above $93,500. As analyst Rekt Capital points out, this level serves as a critical support marker, suggesting strong market support and that Bitcoin is preparing to break out of its current range.

A significant level to watch for Bitcoin’s breakout from accumulation is $104,500. Closing above this would signify a clear breakout and potential for higher prices.

Analyst Ali Martinez notes a close correlation between BTC price movements and global liquidity trends, which usually boosts cryptocurrency momentum. With global liquidity increasing, Bitcoin’s price is increasingly likely to follow suit and break out towards $104,500.

Surge Following Trump’s Announcement

Bitcoin’s price surged to $93,204, an 8% increase after President Trump announced a U.S. strategic reserve of Bitcoin and leading altcoins. Trading volumes rose by 159% as optimism surged within the crypto market.

Additionally, Bitcoin open interest grew by 5.89%, indicating heightened investor activity and interest in the cryptocurrency.

The announcement has bolstered Bitcoin’s price movement, with some analysts suggesting it may reach $150K by March.

However, veteran trader Peter Brandt cautioned that Bitcoin might face a short-term retracement due to the newly formed CME gap. He noted that while BTC could correct, it will ultimately fill the gap and continue to rise again.

Source: X