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- BTC retraced to $104K after filling CME futures gap.
- $240M whale sell-off added to short-term downward pressure.
- Reduced open interest signals potential long-term buying opportunity.
Bitcoin (BTC) has retraced to $104,743 following a classic futures “gap fill,” signaling cautious sentiment among traders after hitting fresh November highs near $107,500. The pullback highlights both the resilience and volatility of the crypto market as investors digest recent price swings.
BTC Faces Resistance and Exchange Sell-Offs
BTC/USD encountered strong resistance near $107,500, forcing a reversal that filled the weekend gap in CME Group’s Bitcoin futures at $104,000. Traders have noted that these gaps often act as short-term price targets.
“Another gap closed within the first few trading days of the week. This has become an incredibly reliable pattern over the past 4-5 years,” commented trader Daan Crypto Trades on X.
Adding to downward pressure, a $240 million sell-off by Bitcoin whales contributed to the drop, according to Material Indicators. Despite the massive market dump, smaller “Brown Mega Whales” accounted for only $3 million of the total.
Trader Skew highlighted the significance: “Some size sold into $104K price area & renewed short interest. Pivotal price point here.”
Derivatives Signal Buying Opportunity
While the price hovered near the $100,000 mark, derivatives traders showed a clear shift toward risk reduction. Open interest in Bitcoin futures dropped by 11.32% over seven days, according to CryptoQuant.
“This decline indicates the market is eliminating speculative risk, historically a precursor to recovery,” noted CryptoQuant contributor GugaOnChain. The current consolidation suggests that Bitcoin is forming a stable base, which could set the stage for a potential rally.
Also Read: Is Bitcoin Facing a 70% Downturn? Tapiero Explains What’s Next
Market Outlook: Consolidation and Potential Rally
Short-term volatility may persist, but the combination of futures gap fills, whale activity, and reduced open interest points to a cautious optimism among long-term investors. Analysts suggest the current levels may represent a prime buying opportunity for those looking to enter the market ahead of a potential rebound.
Bitcoin’s recent price action underscores the market’s cyclical nature: rapid gains often trigger profit-taking, while technical patterns and derivatives behavior guide strategic positioning for traders.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
