Key Points:
- The notable price gap between $77,000 and $81,000 in CME futures is gaining attention as Bitcoin’s price drops.
- According to analysts, gaps in the CME are typically filled eventually.
Bitcoin (BTC) has experienced a 10% decrease this week, falling from a trading range of $90,000 - $110,000 down to $86,300.
This bearish trend is prompting traders to analyze price charts for potential indicators of future price movements. The ‘runaway gap’ below $80,000, which emerged three months ago, is now under close observation.
A gap is created on a price chart when there is a notable difference between the highest price of one trading day and the opening price of the next, resulting from a lack of transactions at certain prices.
The CME bitcoin futures trade for 23 hours daily, closing for a brief maintenance period. An observed gap formed right after Donald Trump’s election victory when prices surged from $77,930 to $81,210.
Traders traditionally expect price gaps to be closed, driven by market activity filling previously untraded price ranges. Nicolai Sondergaard from Nansen noted, “Historically, CME gaps are filled eventually, and it is usually hard to predict when this will happen. Recent unexpected events have significantly affected these price movements.”
Current Trading Context:
As the market shifts, the recent price drop created another gap between February 24 and February 25. It remains uncertain which gaps will be filled first amid ongoing volatility.
