As spot Bitcoin (BTC) pushed higher over the weekend reaching a high of $87,800 on Monday, another gap emerged between CME futures’ closing price on Friday and the start of the new week’s trading.
The futures closed at $84,190 at the end of the last week and opened about $1,000 higher at $85,160. That sets the stage for a drop back because bitcoin has developed a tendency to fill these CME futures gaps.
As of mid-March, it had filled the most recent gap, which was created during the November rally following President Donald Trump’s election victory. That gap was fully closed when bitcoin dropped to $76,700 in mid-March.
The gaps occur because spot bitcoin trades 24/7 while CME futures operate only 23 hours a day, Sunday through Friday. When there’s a significant price movement during the CME’s off-hours, a gap forms between the previous close and the next day’s open.
Historically, bitcoin has often retraced to fill such gaps. Based on this pattern, it’s likely that bitcoin could revisit the $84,000–$85,000 range in the near term.
Read MoreCoinDesk: Bitcoin, Ethereum, Crypto News and Price Data[#item_full_content]
Bitcoin is trading around $91,000 after a minor dip earlier today, and uncertainty continues to…
Bitcoin Magazine Bitcoin Price Craters to $88,000, But JPMorgan Maintains $170,000 Target Bitcoin price plunged…
Bitcoin Magazine Indiana Lawmakers Push Bill to Make State a Bitcoin Leader Indiana lawmakers are…
Softer than expected private inflation data did spark some hope that the Friday decline could…
Bitcoin Magazine Why The Bitcoin Bear Market Is Almost Finished Bitcoin has struggled to maintain…
The bank’s volatility-adjusted bitcoin-to-gold model still points to a theoretical price around $170K over the…