Bitcoin Price Drops Below $60,000: Key Reason Explained

The Bitcoin price has fallen to a low of $59,604 today, marking a 4% decrease. In keeping with several renowned crypto analysts, this movement was largely driven by the phenomenon referred to as the CME gap, an idea critical in Bitcoin futures trading on the Chicago Mercantile Exchange (CME).

Why Is Bitcoin Down Today?

A “CME gap” is a term used to explain the value gap that emerges on the Bitcoin CME futures chart. Unlike Bitcoin’s spot markets that operate 24/7, the CME Bitcoin futures market only trades five days per week, closing over the weekend and on holidays. This difference in trading hours may end up in a price discrepancy between the last traded price on Friday and the market’s opening on Monday.

Today’s Bitcoin price motion can probably be directly linked to the closure of such a niche. Over the weekend, a noticeable gap formed. Daan Crypto Trades (@DaanCrypto), a outstanding trader and analyst, confirmed this via X, explaining, “Bitcoin closed many of the gap that was created during this weekend. On Monday it also closed the gap that was created per week ago and topped out right at that time. [..] The gap has now been fully closed. No major gaps in nearby proximity as we speak.”

Bitcoin CME gap | Source: X @DaanCrypto

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Other market participants echoed this sentiment. Titan of Crypto (@Washigorira) indicated the bullish potential post-gap closure, stating on X, “Bitcoin CME Futures GAP got filled! As expected. Nothing holds BTC back now. Time to send.” This view suggests that filling the gap could remove resistance for Bitcoin’s price, potentially resulting in an uptick.

Crypto analyst Ninja (@Ninjascalp) confirmed, “this was only a CME gap fill guys […] it’s bullish selling. It’s all going to be okey. Don’t panic.” One other analyst commented “For anyone questioning who’s running the BTC market within the short term, it’s market makers! There was no way they were going to depart a $1,650 CME gap from the weekend.”

What To Expect Now?

Marco Johanning offered a more nuanced take, emphasizing the precarious nature of the present price level. His commentary via X highlighted each potential and risk.

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“Primary scenario: Bitcoin has lost the trendline and closed the CME gap. The worth is sitting on an area support, from which it might probably now pump. That might be a typical mid-week reversal with the liquidity behind the equal highs at 63.8k because the important goal. Nonetheless, the present level can also be fragile. If the support is lost, we could see one other 1k-2k drop. I can hardly wait for Bitcoin to finally leave this exhausting time capitulation range,” Johanning stated.

The analysts from Alpha dōjō (@alphadojo_net) provided an in-depth evaluation, dissecting the day’s price movement and potential future trends. Their report highlighted the critical levels that traders are watching: “The evaluation is kind of easy: BTC must bounce here, or if it loses the $60k level, much lower prices are likely. So long as we don’t break below $60k or above $63.5k, it’s best to take it slow and wait for a clearer direction.”

Additionally they noted a big liquidity pool across the $60,000 mark which could act as a support, while stating that a powerful selling presence above this level at $64,000 could cap upward movements. “Within the order books, the sell side stays very strong, while the bid side fails to indicate any increase.”

At press time, BTC traded at $60,388.

Bitcoin priceBTC bounces off $60,000, 1-day chart | Source: BTCUSD on

Featured image created with DALL·E, chart from

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