Bitcoin briefly dropped below $88,000 on Wednesday, completing a closely watched CME futures gap that formed at the start of the year. The move was widely anticipated by traders, as CME gaps often act as short-term price magnets.
After touching lows around $87,800, BTC bounced back toward the $90,000 level. However, analysts say the recovery lacks strong momentum, with market sentiment still focused on risk control rather than aggressive buying.
January gains erased after gap fill
Data from TradingView shows Bitcoin has now hit its lowest level since early January, effectively wiping out over $10,000 in gains from its recent monthly peak. The decline completed the CME gap from the yearly open — a technical milestone many traders were waiting for before reassessing direction.
With the sub-$88K gap now filled, attention is shifting upward. Traders point out that three CME gaps remain above current price levels, located near $97,800, $113,400, and $116,900.
While some believe closing this gap could ease short-term downside pressure, others remain cautious, questioning whether Bitcoin has enough strength to push higher in the near term.
