By: Eva Baxter
Chicago Mercantile Exchange (CME) gaps are pivotal indicators traders pay attention to when trading Bitcoin Futures. These gaps occur during the hours when the Bitcoin Futures market is closed, typically over the weekend. Unlike the 24/7 spot market, CME Futures have specific trading hours, leading to potential price discrepancies or "gaps." This news article highlights the recent CME gap between $78,000 and $80,700, emphasizing its influence on BTC's price action.
These price gaps can act as magnets, drawing the price back to "fill" the gap. Traders consider gaps as indicators of potential support and resistance, which can significantly drive market dynamics. Historical price data often shows that CME gaps tend to get filled over time, which makes them key elements in forecasting price movements.
The presence of a gap can indicate volatility and potential reversals if the market conditions allow. Analysts, such as those from this news source, suggest that filling these gaps might serve as support or resistance levels, forming critical decision points in Bitcoin's price trajectory.