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Bitcoin briefly dipped below $88,000 on Wednesday, filling a key Chicago Mercantile Exchange (CME) futures gap formed at the start of the year — a move closely watched by traders as a potential short-term turning point.BTC rebounded modestly toward the $90,000 level after touching intraday lows near $87,800, but analysts cautioned that the bounce lacks conviction, with broader market sentiment still tilted toward capital preservation.BTC erases January gains after CME gap fillAccording to TradingView data, Bitcoin’s decline marked its lowest price since the beginning of January, wiping out more than $10,000 in gains from earlier monthly highs.The move completed a long-watched CME futures gap from the yearly open — a technical level that often acts as a price “magnet,” drawing spot markets back before any sustained trend resumes.With the sub-$88,000 gap now closed, traders note that three additional CME gaps remain above current price levels, near:$97,800$113,400$116,900While some analysts argue the completed gap removes near-term downside pressure, others remain skeptical about Bitcoin’s ability to regain upside momentum.Traders divided as technical structure weakensMarket reaction following the gap fill has been mixed.Some traders suggested the move was necessary to reset positioning before any potential rebound. Others highlighted deteriorating structure on higher timeframes, pointing to a failed breakout attempt and renewed pressure along descending trendlines.One commonly cited concern is the formation of a lower low following a recent higher high — a pattern often associated with weakening trend continuation.As one trader summarized, Bitcoin is now “back to square one for the year,” with price once again testing key technical support rather than extending higher.Macro pressure keeps crypto in defensive modeBeyond technical factors, macroeconomic conditions continue to weigh heavily on crypto markets.In its latest Asia market update, trading firm QCP Capital said Bitcoin is behaving increasingly like a high-beta macro asset, reacting sharply to:Interest rate expectationsGeopolitical riskCross-asset volatility“Until clearer policy signals emerge, crypto is likely to remain reactive rather than directional,” QCP noted, adding that markets are currently prioritizing capital preservation over conviction.Gold hits new records as Bitcoin lagsWhile Bitcoin struggles to regain traction, traditional safe-haven assets continue to outperform.Gold surged to a fresh all-time high near $4,888 per ounce, extending its rally amid rising geopolitical tension and trade uncertainty. The divergence has reinforced a short-term risk-off narrative, with capital favoring metals over digital assets.Market observers say the contrast underscores Bitcoin’s current sensitivity to macro stress, rather than its long-term store-of-value narrative.What traders are watching nextWith the January CME gap now filled, attention shifts to whether Bitcoin can:Hold above the $88,000–$90,000 zoneReclaim lost trendline supportAttract renewed spot demandUntil then, analysts say the market remains vulnerable to volatility spikes, with upside dependent on clearer policy direction or a return of institutional risk appetite.For now, Bitcoin remains range-bound — and cautious sentiment continues to dominate the tape, according to Cointelegraph.