Bitcoin correction or setup? CME gap meets bullish pattern

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Despite most assets in the cryptocurrency market dragging their feet lately, Bitcoin (BTC)’s long-term chart continues to print a higher-high, lower-low (HH-HL) pattern, which is a classic signal of sustained uptrend structure, even as short-term charts, like the CME gap, point to a pullback.

Specifically, Bitcoin is maintaining a clean upward rhythm on its weekly chart, forming sequential higher highs and higher lows since mid-2023 in a structure often viewed as confirmation of buyer dominance, per an analysis shared by popular crypto analyst Javon Marks on October 21.

Furthermore, such a structure also implies that corrections are likely just pauses within a broader bullish cycle rather than signs of trend reversal. As the crypto expert himself put it:

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“This visual displays a combination of Higher Highs (HH) and Higher Lows (HL) – indicative of an upward structure. This type of structure signals buyer dominance and room for continuation.”

As it happens, the chart projects another potential higher low forming around current levels before the next impulsive leg higher. Historically, this pattern has preceded fresh all-time highs (ATHs), making the current consolidation a crucial period for trend confirmation.

Short-term charts show gap retrace

At the same time, fellow crypto analyst Mikybull Crypto pointed to short-term CME futures data showing Bitcoin’s spot price moving to close its lower CME gap, which currently sits between $107,600 and $107,900. On the 1-hour CME chart, BTC seems to be retracing precisely into that zone, which is a common behavior before resuming broader trend momentum.

At the moment, Bitcoin is changing hands at $107,805.35, indicating a decline of 2.71% on the day, a 3.26% dip across the past week, and a loss of 6.79% accumulated on its monthly chart, according to the most recent price information.

Overall, the two analyses offer complementary perspectives: long-term structure supports a continued bull market, while short-term momentum seeks liquidity and confirmation through minor corrections. As long as Bitcoin continues to form higher lows, the macro outlook remains bullish.