Bitcoin Price Closes CME Gap, Bullish Data Signals ATH Is Possible

Bitcoin (BTC) has finally closed a crucial gap on the CME exchange, hinting at a bullish price reversal. Also, the negative momentum within the Bitcoin market is easing. The Bitcoin Percent Supply in Profit metric indicated this.

Market participants think an all-time high (ATH) rally is possible for Bitcoin soon. Another key factor at play is the global M2 liquidity supply.

Bitcoin Fills CME Gap

Market analyst Ted Pillows highlighted in an X post that Bitcoin has closed the CME gap at $110,740. This refers to the closing price of Bitcoin futures on the CME, a major platform for institutional traders.

The CME futures market is important because its price movements often influence spot Bitcoin prices. Price gaps happen when an asset opens at a different price than it closed the day before. It can open higher or lower without any trades in between.

These gaps often act as magnets for future price movements. Traders anticipate the asset will eventually return to the gap level to “close” it.

The closing of a downward gap, as spotlighted by Ted Pillows, is seen as a bullish signal for Bitcoin. It suggests that the market has addressed an imbalance, potentially opening the way for a price rebound.

Despite the signals of upward momentum, Ted Pillows expects to see a sideways BTC price action. His sentiments are based on historical patterns.

The analyst pointed out that recent weekend price surges in Bitcoin were followed by full retracements. This means that the price drops back to its starting point or lower.

Typically, weekend markets experience lower trading volume due to reduced institutional participation. However, sideways weekend movement is not totally negative. It can allow traders to accumulate positions or wait for clearer signals without the risk of a sharp reversal.

Improving Bitcoin Percent Supply in Profit Metric

Another key indicator to watch for future BTC price movement is Bitcoin Percent Supply in Profit. This metric offers insight into market sentiment and trader behaviour.

Axel from CryptoQuant said Bitcoin’s Percent Supply in Profit increased recently. It went from −12% to −6% over the last 30 days.

This metric measures the percentage of Bitcoin’s circulating supply held at a profit. Simply put, it measures the current market price against the price at which those coins were last moved.

As pointed out by Axel, the share of Bitcoin’s supply in profit dropped by 12% a month ago. Now, the decline is only 6%, which suggests that selling pressure is easing and the bearish momentum is losing steam.

However, the market has not fully recovered as the share of coins in profit is still lower than a month ago. Still, the easing negative momentum is a positive sign for bulls.

Bitcoin and Global M2

Vivek Sen, a reporter for Bitcoin Magazine, has added to the optimistic sentiments for Bitcoin. Vivek predicted that Bitcoin is set for a parabolic move based on the current global M2 liquidity supply trends.

For emphasis, M2 refers to the total amount of money in circulation. It indicates how much liquidity is available in the economy, including cash, checking deposits, and accessible savings.

Current statistics show that the U.S. M2 money supply has spiked to $22.2 trillion, up 4.7% from the previous year. The increase suggests central banks are expanding the money supply, and could help improve adoption for BTC.

Already, the spike in M2 has caused Bitcoin to climb above $110,000, mirroring previous cycles. Notably, BTC reached an ATH of $119,123 on July 13, following a surge in global M2 supply.

At press time, Bitcoin has found a level of stability at the $111,700 price range, showing potential for further uptick.