Bitcoin Price Rebounds After CME Gap Closure
Bitcoin price rebounded sharply to around $118,800 on August 15 after filling the CME futures gap at $117,500. Traders pointed to the gap closure as a catalyst for bullish momentum. Earlier in the week, a softer US CPI boosted optimism for a Fed rate cut, but hotter-than-expected PPI data triggered risk-off selling, pushing Bitcoin below $118,000 and unwinding $1.89 bn in long positions. Analysts Ted Pillows and Jelle highlighted key technical signals: Bitcoin bounced exactly from the $117.5K level, closed 75% of the CME gap, and regained the 4-hour 50-period EMA. Turning $120,000 into support could open the way to new highs. Institutional demand remained robust, with corporate and government holdings rising from 1.1 m BTC in 2024 to 1.77 m BTC, and over $561 m in net inflows into Bitcoin spot ETFs recorded last week. Derivatives data show a neutral futures premium and a 3% options delta skew. With RSI at 54 and a MACD bullish crossover, key support at $116,000 might enable a retest of the $124,474 all-time high, although macro factors and Fed policy remain critical.
Bullish
The closure of the CME futures gap at $117,500 and the subsequent rebound to $118,800 highlight renewed buying interest and technical support for Bitcoin price in the near term. Historical patterns show that gap fills often precede upward moves. Combined with softer CPI data, rising institutional demand—including a jump from 1.1 m to 1.77 m BTC in corporate holdings—and $561 m in spot ETF inflows, market sentiment has turned positive. Technical indicators such as an RSI at 54, a MACD bullish crossover, and the prospect of $120,000 becoming support further strengthen a bullish case. While macro factors and Fed policy remain watchpoints, this convergence of technical and fundamental drivers suggests a higher probability of a continued rally, at least in the short to medium term.