Bitcoin falls to fill CME futures gap, erasing January gains

Bitcoin (BTC) looked for cues near $90,000 on Wednesday as price action hit a key rebound target and dropped to $87,800, filling a CME Group futures gap created at the yearly open and wiping January gains.

TradingView data showed BTC was up 1.1% on the day after the move to $87,800, a level that marked the lowest since the start of January and erased more than $10,000 of month-to-date gains. Cointelegraph noted that CME gaps from the yearly open often act as short-term price targets, with markets returning to them within days or hours.

Trader reactions were mixed: one account, CW, said a "rapid rise is expected" and that the gap-fill was needed to ensure a "stable rally," while trader Jelle turned more bearish, saying a "higher high immediately followed by a lower low," and that the "CME Gap filled and price retesting the trendline once again - but we can all agree that this ain't looking strong anymore."

Macro factors remained influential, with QCP Capital describing Bitcoin as "trading like a high-beta risk asset, highly sensitive to rates, geopolitics, and cross-market volatility," and concluding that "until clearer policy signals emerge, crypto is likely to stay reactive rather than directional" and is for now focused on "capital preservation over conviction." Traditional hedge gold continued to outperform, reaching an all-time high of $4,888 per ounce, a move The Kobeissi Letter called "history."

Key Topics

Crypto, Bitcoin, Cme Group, Tradingview, Qcp Capital, Gold