Bitcoin closes $107K CME gap as focus shifts to Friday's key CPI print

💡 DMK Insight

Bitcoin’s bounce at $106,000 is significant, but traders are still skeptical about its sustainability. Closing the CME futures gap is often seen as a bullish signal, yet the lack of enthusiasm from traders suggests underlying caution. This could indicate that many are waiting for clearer bullish signals before committing further capital. The divergence from gold, which typically serves as a safe haven, raises questions about Bitcoin’s correlation with traditional assets. If Bitcoin can hold above $106,000, it might attract more buyers, but a failure to do so could lead to a retest of lower levels. Watch for volume trends and sentiment indicators; if we see increased buying pressure, it could signal a shift. Conversely, a drop below this level might trigger stop-loss orders and further selling, especially among retail traders who are often more reactive. Keep an eye on the next few daily closes to gauge momentum.