Bitcoin’s Weekend Surge Creates CME Futures Gap Indicating Possible Price Drop
Bitcoin (BTC) surged over the weekend, nearing its all-time high of $123,000, while creating a gap in CME futures pricing. Key points include:
- CME futures closed at $117,430 on Friday and opened at $119,000 on Monday.
- Historically, Bitcoin tends to fill these gaps shortly after they form.
- Daan Crypto Trades highlighted that most previous gaps closed within the same day.
- The current market phase indicates Bitcoin is approaching price discovery as it nears its all-time high.
- There is potential for "runaway gaps," where strong momentum continues without returning to fill the gap.
- Traders should monitor the gap closely; closing it may indicate a reversal point.
- A price drop to around $120,000 or lower could increase the likelihood of filling the gap.
Traders await the U.S. market open to see if the gap closes or if Bitcoin's bullish trend propels it past $123,000.