Bitcoin Plunged Again! Are CME Gaps Behind The Dip?
Bitcoin Future CME gap filled!
Bitcoin futures trading is gaining traction in the recent days with many investors getting attracted towards the derivatives trading. However, the trades are closed on weekends and for the reason, the Chicago Mercantile Exchange(CME) gaps are formed.
Post the recent pump of Bitcoin, some analyst discovered a massive CME gap surrounding $11,200. This gap was expected to be filled soon, however, the event is anticipated to have occurred in just a couple of hours before.
Bitcoin which had rallied above $11,400 for some instance, dumped back to fill the CME gap. Currently, Bitcoin is priced at $11,264.27 with a loss of 0.9 percent in the last 24 hours. One of the analysts The Moon had tweeted about the gap well before Bitcoin dip.
There is a CME gap at $11,200 in the #Bitcoin chart.
I expect it to get filled this week. pic.twitter.com/KirwXhCMuz
What are CME gaps and do the Gaps fill?
CME or Chicago Mercantile Exchange for the first time introduced and listed Bitcoin Futures trading. The exchange does not function at weekends but crypto market functions 24/7, and hence the gaps are usually formed in the weekend.
CME gaps are essential in determining the direction of Bitcoin in the coming days. Amidst a Bitcoin bull run, if a CME gap is seen, then the digital asset is expected to visit the gap and fill it. In simpler words, Bitcoin could possibly dump to the gap area to fill it.
On the contrary, there are still many more gaps, at much lower levels. Two such gaps are around $9000 and $3000 of the Bitcoin Futures chart which is yet to be filled. And analysts predict that these gaps would be filled sometime in the future. However, CME gap remains a debatable topic with many versions of analysis.
On the whole, Bitcoin which had risen near around $11400, has dipped around $11200 which is anticipated the CME gap area. However, there is no solid proof that the bitcoin always visits the CME gap area to fill it, it is pure speculation.
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