Traders Eye Potential Pullback as Gap-Filling Risk Remains
Bitcoin (BTC) surged past $121,000 in early Monday trading, extending weekend gains that pushed the spot price above $119,000 and creating a new CME futures gap. The move comes as momentum builds near all-time highs, with analysts weighing the possibility of a “runaway gap” versus a near-term retracement to fill the void.
The CME Bitcoin futures market closed Friday at $117,430, reopening on Monday with a notable gap due to strong weekend price action. Historically, such gaps tend to be filled as price revisits those levels, but in rare cases, powerful bullish momentum can keep them open for extended periods.
On the 4-hour chart, BTC recently broke out from a descending wedge pattern, blasting through the $118,000 resistance zone highlighted in green. This breakout was accompanied by increased trading volumes, signaling strong market participation from both retail and institutional investors.
“When Bitcoin is trading this close to all-time highs, gaps can become more complex to interpret,” explained strategists. “The $117K gap could act as a magnet, but a strong continuation rally could postpone any retest.”
Support now sits at $118,000–$116,500, a key consolidation area prior to the breakout. A deeper support band lies near $112,000, which aligns with a prior breakout base and the lower orange zone on the chart. Maintaining these levels is crucial for sustaining the bullish structure.
The next major resistance level is just below $124,000, marked by a red horizontal line corresponding to prior highs. A decisive close above this level could open the path toward uncharted territory, while failure to break through could trigger profit-taking and a move back toward the CME gap.
With strong technical breakout signals, gap dynamics in play, and resistance just ahead, Bitcoin’s next sessions could prove pivotal in determining whether this rally extends or consolidates.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.