Bitcoin Price Bleeds Red-Will the BTC Price Fill the CME Gap at $20,000?

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The crypto space has been in turmoil since the past week, initially due to the authorities charging Binance and Coinbase. However, the fresh bearish wave has now been triggered by the FOMC’s interest rates, which remained unchanged. Many expected the hike in interest rates to be paused for a while, but the chair, Jerome Powell, hinted in his speech of another couple of 0.25 bps rate hikes before the end of 2023. 

As the speech turned out to be more hawkish, the inflation rate continued to remain above the FED’s target. Further, the projections for GDP growth and employment have now made me quite optimistic. Besides, the BTC price, which was holding support along the ascending trend line, dropped to mark an intraday low of around $24,820.56. Therefore, the question now arises whether the price will continue to drop to fill the CME gap at $20,000.

A huge gap has been formed between $20,260 and $21,340 during the mid-March trade, just before the price ignited a fine upswing to mark the yearly highs at $31,200. This is the only unfilled CME gap as of now that could be filled in the days ahead. The technicals are turning bearish, which may substantiate the claim of another bearish wave very soon. 

Bitcoin has been testing the $25,300 support a couple of times, indicating a probable move towards $23,300 to $24,000. Moreover, the price is believed to maintain a consolidated trend below the April highs at $31,000 for a while as market conditions have deteriorated to a large extent. These are the challenges a new cycle always presents, as the first bull market phase always has the bulls and bears guessing and doing everything possible to remain stuck at both extremes, greed and fear. 

Collectively, the test is expected to play out for many months, and hence it is important now to watch the market trend, avoiding emotions.