Bitcoin Faces Weekend Pullback as CME Gap Opens Toward $97K

• Bitcoin shows bearish momentum under a descending trendline as traders eye a potential CME gap fill toward the $97K level this week.
• Despite tight liquidity and a narrow spread, Bitcoin volume remains low, signaling uncertainty and hesitation among market participants.
• The CME gap around $97K highlights a bullish target, but persistent lower highs and resistance keep short-term pressure on BTC prices.

Bitcoin (BTC) experienced a slow weekend with mild downward pressure, pulling back to around $95,401 as of May 4. The asset traded within a narrow range, reflecting both market hesitation and lower volume. A minor dip of 0.01% was recorded, with BTC touching a session low of $95,401.60. Despite the sluggish action, a potential upside CME gap is forming, hinting at a possible short-term bullish retrace early in the week.

Significantly, the CME closed lower than where BTC is expected to open, leaving a notable gap up to approximately $97,000. These CME gaps have often attracted price movement within one to three days. Hence, traders are now watching closely for a fill, which has become a recurring pattern. Additionally, this gap reflects the disconnect between traditional finance trading hours and the 24/7 crypto markets.

Bearish Trend Persists Under Key Resistance

Despite the short-term optimism surrounding the gap, Bitcoin’s structure remains bearish on the 15-minute timeframe. A descending trendline stretches from May 2 through May 4. BTC has repeatedly tested this trendline but failed to break through. Moreover, the pattern of lower highs and lower lows has remained intact.

Source: Daan Crypto Trades

Recent candles show minimal momentum. Small-bodied candlesticks with short wicks have formed, revealing growing indecision. This indicates that neither buyers nor sellers have taken full control. However, the trendline resistance continues to suppress upward moves, keeping the short-term bias tilted bearish.

Liquidity Stays High Despite Low Volume

Additionally, market liquidity remains tight. The bid and ask prices are separated by only $0.01, sitting at $95,401.60 and $95,401.61. This tight spread reflects strong liquidity and healthy order book depth. However, volume tells a different story. Trading activity has thinned out since the sharp volume spike on May 2 around 12:00.

Consequently, the market awaits a catalyst to shake off the lethargy. Traders are closely monitoring the $97K level, especially if price action starts pushing upward. The magnet icon on the chart symbolizes the market's tendency to “fill the gap,” aligning with current expectations.

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