Bitcoin is Currently trading over $115,000However, recovery has a shadow that cannot be ignored. A new gap has been opened in the CME Bitcoin futures chart. The spot market has since grown high, but this gap exists Open a bearish scenario. These gaps have a history of filling in by pulling Bitcoin down, and the latest one opens questions about how long the bullish momentum is currently going to last.
Bitcoin opens a huge CME gap
Crypto Analyst Daan Crypto It is listed in How social media platform X Bitcoin opened the week with a high CME gap since futures opened. This gap is important. It’s been a while since Bitcoin opened up in such a big gap.
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As shown in the chart image below, this CME gap ranges from $110,000 to $111,300. CME futures gap It tends to close pretty quickly. In other words, Bitcoin often traces the gap level before it resumes its trend. If that happens this time, the short-term structure of Bitcoin price action could degrade to bearish momentum.
However, Dern also pointed out that this gap should not be considered in play unless Bitcoin falls below $111,000. But if that happens, the futures chart can lower spot prices and weaken recent strength.
What does this mean for Bitcoin?
The CME gap occurs because Chicago commercial exchanges are not traded on weekends, unlike the Spot Bitcoin Market, which operates 24/7. If Bitcoin makes a big move on Saturday or Sunday, CME futures will resume on Sunday evening at a different level than Friday’s closing, leaving an empty gap in the price list.
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It is common knowledge that Bitcoin tends to fill these gaps by returning to gap levels before continuing. When Bitcoin retraces this latest gap between the $110,000 and $111,000 range, Recovery has brought it to $115,000 Return prices to the zone of uncertainty.
According to Daan Crypto, if that happened here, the whole structure would look rather bad in the short term. However, this may be one of the few gaps that will not close until a few months later. This is probably the case unless Bitcoin is below $111,000. If it falls below $111,000, Bitcoin can eventually lose its $110,000 price level again.
If Bitcoin can exceed $115,000 There is ample purchasing pressure, The gap can then be negligible in the short term. The next test is whether buyers can maintain the momentum they have recently discovered and push it to $120,000.
At the time of writing, Bitcoin has traded at $116,380, up 1.4% over the past 24 hours.
Pixabay featured images, charts on tradingView.com
