Bitcoin price action hit a critical technical level this week, with BTC briefly slipping below $88,000 to fill a long-watched CME futures gap. While a modest rebound followed, market sentiment remains cautious as traders question whether the downside move is truly complete.
Bitcoin struggles near $90,000 after January sell-off
On Wednesday, Bitcoin hovered near the $90,000 level after dipping as low as $87,800. According to data from TradingView, BTC was up around 1.1% on the day, but the bounce did little to restore confidence.
The drop marked Bitcoin’s lowest price since the start of January, wiping out more than $10,000 in gains from its monthly highs. This move also completed a key technical objective: filling the CME futures gap that formed at the yearly open.
Why the CME gap matters for Bitcoin price
The gap originated on the CME Group Bitcoin futures chart, where price levels are often revisited after periods of strong volatility. As previously noted, these gaps frequently act as short-term magnets for price action, sometimes being filled within hours or days.
With this downside gap now closed, traders are turning their attention to remaining CME gaps that sit above the current spot price. However, opinions are split on whether Bitcoin is ready for a sustained recovery.
Mixed trader sentiment after the gap fill
Some market participants see the gap fill as a necessary reset. Trader CW suggested that clearing this level could support a more stable rally, arguing that the move was needed before any rapid upside continuation.
Others are less optimistic. Trader Jelle pointed to weakening structure on the daily chart, noting that a higher high was quickly followed by a lower low. According to his analysis, Bitcoin is once again testing a downward-sloping trendline after a failed breakout, a setup he described as “not looking strong anymore.”
Bitcoin trades like a risk asset amid macro uncertainty
Beyond technicals, macroeconomic conditions continue to weigh heavily on crypto markets. In its latest Asia Color update, trading firm QCP Capital described Bitcoin as behaving like a high-beta risk asset, highly sensitive to interest rates, geopolitical tensions, and broader market volatility.
The firm noted that without clearer policy direction, crypto markets are likely to remain reactive rather than trend decisively. For now, the dominant mindset among investors appears to be capital preservation rather than high-conviction positioning.
Gold outperforms as Bitcoin gives up January gains
While Bitcoin struggles to reclaim momentum, traditional safe-haven assets continue to shine. Gold surged to yet another all-time high, reaching $4,888 per ounce on the day.
Market commentary platform The Kobeissi Letter summed up the moment by stating that investors are “witnessing history,” highlighting the growing divergence between risk assets like Bitcoin and defensive hedges such as gold.
As BTC consolidates near $90,000, traders remain on edge, watching closely to see whether the CME gap fill marks a local bottom or simply a pause before further volatility.
