BTC Faces Pressure After Filling CME Gap, US Tariffs Fuel Market Uncertainty
BTC dropped to a fresh three-week low of $114,322 on Bitstamp Friday, briefly filling a notable CME futures gap from July. According to data from Cointelegraph Markets Pro and TradingView, BTC/USD rebounded after touching this level but remained under pressure as U.S. trade tariffs weighed heavily on sentiment.
The filling of CME gaps—price voids left during weekends—is often viewed by traders as a key technical event, with gaps typically filled within hours, days, or weeks once markets reopen. Crypto entrepreneur Ted Pillows expressed optimism on social media, predicting a “nice upward movement” following the gap fill.
Mixed Market Signals: Cautious Traders Eye Critical Levels
Despite the bounce, some traders urged caution. Analyst Cipher X highlighted that Bitcoin must reclaim $116,000 soon to avoid further declines, noting a potential drop toward $104,000 if resistance holds. Meanwhile, trader Crypto Candy emphasized the importance of Friday’s daily close staying above the $115,000-$116,700 zone to sustain bullish momentum.
Failure to hold this support could see Bitcoin retesting lower levels near $111,800 before attempting another leg toward its all-time high (ATH).
Bitcoin Struggles While Stocks Remain Resilient
Friday’s Bitcoin slide outpaced broader risk assets, as President Donald Trump’s administration imposed sweeping reciprocal tariffs. In contrast, S&P 500 futures only dipped modestly by 0.4% ahead of the Wall Street open.
The market appears somewhat desensitized to trade war developments, with The Kobeissi Letter noting that the trade war “has lost all credibility” in investors’ eyes. Four months ago, similar tariff news might have pushed S&P losses to 3%, but markets have since adjusted.
Adding complexity, the Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge, came in above estimates this week. Fed Chair Jerome Powell’s hawkish remarks and the decision to keep interest rates steady have led markets to price out rate cuts in 2025, posing additional headwinds for risk assets like Bitcoin.
