Bitcoin price rebounds after CME gap closure, sparking bullish momentum hopes amid steady institutional demand.
Bitcoin saw a rebound after the recent CME gap closure, with traders pointing to possible bullish momentum in the near term.
The price had briefly dropped below $118,000 but then bounced from the $117,500 level. This movement follows a volatile week driven by US inflation data and large position liquidations.
Bitcoin CME Gap Closure and Market Reaction
Crypto analyst Ted Pillows noted that Bitcoin bounced exactly from the $117,500 level after the CME gap was filled.
He suggested that this could mark the worst of the recent drop and the start of a new rally. The rebound came after a sharp retreat from an all-time high of $124,474.
The Bitcoin CME gap has now been filled.
And after that, the $BTC bounced exactly from the $117.5K level.
Now I think that the worst is in for BTC and a new rally will start. pic.twitter.com/lss1lMp9c6
— Ted (@TedPillows) August 15, 2025
Earlier in the week, softer-than-expected US Consumer Price Index data boosted market sentiment. This fueled expectations of a possible rate cut by the Federal Reserve in September.
However, optimism was reduced after hotter-than-expected Producer Price Index data signaled building inflation pressures.
The release of PPI data triggered risk-off sentiment, pushing Bitcoin below $118,000. This move erased earlier gains and fueled a $1.89 billion unwind in long positions. Analysts said the drop primarily affected late long positions, suggesting over-leveraged traders were caught off guard.
Jelle, another analyst, stated that Bitcoin recovered well from the post-PPI sell-off. He observed that 75% of the CME gap was closed and that the price regained the 4-hour 50 EMA. He added that turning $120,000 into support could open the way to price discovery.
Institutional Activity and Corporate Holdings
Institutional demand remained steady despite the price swings. Companies such as Strategy, Metaplanet, and Capital B increased their Bitcoin holdings as part of treasury strategies. Currently, public companies hold over 70% of corporate and government-owned Bitcoin.
Corporate holdings rose from 1.1 million BTC in 2024 to 1.77 million BTC in August 2025. This trend shows growing adoption among businesses and government entities. SoSoValue data also recorded over $561 million in net inflows to Bitcoin spot ETFs during the week.
Trader Sentiment and Bitcoin Technical Outlook
Crypto Chase commented on the unusual market moves, suggesting that Bitcoin’s latest price action offered traders “the most free basic short of all time.” He pointed to patterns like single failed pushes and straightforward swing failure points as part of this year’s trading environment.
Imagine we top on a first try SFP on $BTC. No 2nd push, no deviate the SFP for a bit, just the most free basic short of all time. This years PA is really something else. Previous ATH retests, free SFPs. First year traders gonna retire same year at this rate. Can we get normal PA? pic.twitter.com/w2ADDJ5ge6
— Crypto Chase (@Crypto_Chase) August 15, 2025
Despite the volatility, derivatives market data suggested a balanced outlook. The Bitcoin futures premium remained in a neutral range, and the options delta skew stayed near 3%. Analysts viewed this as a sign that traders are not heavily betting on either sharp declines or large rallies.
Key Support and Resistance Levels
Bitcoin trades near $118,800 as of Friday, with key support seen at $116,000. Holding above this level could allow the price to retest the recent record high of $124,474.
Technical indicators, including the RSI at 54 and a recent MACD bullish crossover, point to potential upward momentum.
If the $120,000 level turns into solid support, market watchers say the next phase could be a move into price discovery. However, macroeconomic conditions and Federal Reserve policy expectations remain factors that could influence short-term trends.
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