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Bitcoin suddenly dives to $46,000 as attention focuses on large CME futures gaps

Bitcoin (BTC) showed fresh signs of an imminent correction on March 31, as BTC price action began to eat into last weekend’s CME futures gap.

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BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView

Up or down, CME futures gaps provide targets

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD abruptly fell $1,000 in minutes after Wall Street opened on March 31 on Bitstamp.

The pair had moved after failing to cement $48,000 as support earlier in the week amid calls for a retest of lower levels as a necessary step after sizeable gains.

At the time of writing, Bitcoin was circling $46,700, marking its lowest level since the night of March 27th.

A look at the CME futures chart showed that the near-term price action may have a downside target in the form of the ‘gap’ left over from last weekend.

CME futures closed around $44,650 on March 25 to open at $46,725 on March 28.

The resulting “gap” could very well be “filled” based on historical precedent, meaning Bitcoin would face another $2,000 drop.

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CME Group Bitcoin Futures 1-Day Candlestick Chart. Source: TradingView

However, popular Twitter account @CivEkonom noted that a “secret” previous gap from last year between $52,000 and $54,000 also remained open.

“Gaps are always being filled in CME bitcoin futures,” he said commented.

Everything according to plan

The retest, meanwhile, fell into the short-term game plan for some popular traders.

Related: Bitcoin has just regained a key price trendline after its longest absence since March 2020

In an update later that day, Anbessa said he also favors a return to the mid-$44,000 range, while only a move lower would challenge his previously bullish view.

Cheaper coins would further favor late-March’s top buyer, blockchain protocol Terra, whose buy-ins hit 30,000 BTC on March 31.

Meanwhile, cross-crypto sentiment also continued to adjust lower The Crypto Fear & Greed Index entered “greed” territory for the first time in 2022.

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Crypto Fear & Greed Index (Screenshot). Source: Alternative.me

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