Bitcoin Faces Short-Term Pullback Risk as New CME Gap For

Bitcoin’s strong upward momentum is facing a notable technical hurdle as a new price “gap” has appeared on the CME futures chart. The formation of this gap,  professional traders, who debated about a potential short-term price correction, even as on-chain indicators continued to show the strength of the current bull cycle.

What is a CME Gap and Where is It Located?

A CME gap occurs when there is a significant difference between the closing price of Bitcoin futures on the CME exchange on a Friday and the opening price the following Monday. Because the spot crypto market trades 24/7, weekend price movements create these gaps on the CME chart, which closes over the weekend.

The latest gap identified on the 4-hour chart is located precisely between $110,990 and $111,355. Historically, the market has a strong tendency to return to “fill the gap” before continuing its primary trend. Therefore, people consider the probability of Bitcoin pulling back to this price zone .

For More: Ethereum Short Positions on CME Historic Surge

Source: TradingView

Growing Scarcity Signals Strong Holding Sentiment

Source: CryptoQuant

A powerful bullish undercurrent is forming for Bitcoin; increasing scarcity of coins on exchanges makes it evident. According to CryptoQuant, the Bitcoin exchange reserve has plummeted to 2.3 million BTC, its lowest level in over seven years (since July 2018). This sustained outflow of coins from exchanges, consistent since mid-2024, suggests investors are prioritizing long-term holding over short-term selling, a dynamic that historically precedes significant upward price movements.

What To Expect

The appearance of the gap immediately drew the attention of the trading community. This gap creates a clear downside risk, despite optimistic signals from on-chain data. Traders are now focused on two critical price zones: the $109k – $111k support area and the $115k – $118k resistance area to determine the next move.

Additionally, a larger gap in the $116,500 to $118,400 region, which could act as a short-term resistance area as Bitcoin pushes toward new highs.

Broader Market Context

Trading volume in the futures market remains high, and leverage is expanding. This suggests a highly active market but also one with potential risks of liquidation cascades if a sharp price movement occurs. The presence of the CME gap adds to the cautious sentiment among traders, who may be inclined to take profits and wait for a better entry point after a potential correction.

If buyers can maintain control and hold prices above this support level, the broader uptrend for Q4 2025—with expectations of a new all-time high—remains the most likely scenario.

Source:SoSoValue