Bitcoin Price Dips Below $90,000, Fills One of Two Futures Gaps

Bitcoin's price dipped below $90,000 on Thursday, filling one of two new futures gaps. This move was predicted by analysis, which suggested a potential bottom level for the next Bitcoin (BTC) price cycle. The cryptocurrency stayed in step with gold, as both assets cooled their new-year rebound, which was driven by geopolitical tensions around Venezuela.

The price of Bitcoin dived to $89,530 on Bitstamp during the Asia trading session, according to data from TradingView. This move was seen as a classic short-term target by market participants. Crypto trader and analyst Michaël van de Poppe noted that Bitcoin had retested the 21-day moving average (MA) at $88,900. He also reported that the price had briefly dipped beneath this level.

Exchange order-book liquidity led trader Daan Crypto Trades to flag $89,000 and $92,000 as key levels. He predicted that the price would chop around this region until the end of the week. The focus was on the fate of the open gap on CME Group's Bitcoin futures market, which often dictates short-term BTC price targets. The latest move lower filled one of these gaps, and there is still one gap remaining that could see the price return to $88,000 next.

If the market reverses higher without filling this gap, it could mark the bottom of the next BTC price cycle, according to analysis. Filling the second gap would take the price back near $88,200. Pseudonymous analyst CW called the outstanding gap a potential risk and suggested that it's best to eliminate this risk before starting a rally.

Bitcoin's Price Movement

The price of Bitcoin has been volatile in recent days, with the cryptocurrency dipping below $90,000. This move was predicted by analysis, which suggested a potential bottom level for the next Bitcoin price cycle. The cryptocurrency has stayed in step with gold, as both assets cooled their new-year rebound.

Technical Analysis

Crypto trader and analyst Michaël van de Poppe noted that Bitcoin had retested the 21-day moving average (MA) at $88,900. He also reported that the price had briefly dipped beneath this level. Exchange order-book liquidity led trader Daan Crypto Trades to flag $89,000 and $92,000 as key levels.

Market Outlook

The focus is on the fate of the open gap on CME Group's Bitcoin futures market, which often dictates short-term BTC price targets. The latest move lower filled one of these gaps, and there is still one gap remaining that could see the price return to $88,000 next. If the market reverses higher without filling this gap, it could mark the bottom of the next BTC price cycle, according to analysis.

Conclusion

The price of Bitcoin has been volatile in recent days, with the cryptocurrency dipping below $90,000. The focus is on the fate of the open gap on CME Group's Bitcoin futures market, which often dictates short-term BTC price targets. The latest move lower filled one of these gaps, and there is still one gap remaining that could see the price return to $88,000 next.