There are 3 CME gaps on the Bitcoin chart, which one is going to fill first?
Bitcoin trades all the time, it is never closed. For this reason there are never any "gaps" on the charts.
A "gap" is a space on the chart that the price skips over due to whatever the chart tracking changing prices while that particular market was closed.
Sounds confusing the way I worded it there, but it's not.
We see these "gaps" quite often with bitcoin and the CME futures products.
Since the CME has designated trading hours, while bitcoin is always open, there is quite often "gaps" that show up on the CME charts...
The most recent unfilled CME gaps can be seen here:
(Source:
)https://twitter.com/FeraSY1/status/1261660004425359361/photo/1
- FeraSY1
You notice the blank spots on the charts there?
While we do quite often see gaps, there are only 3 still open from the last 2 years of trading...
Ones at:
- $11,740
- $7,625
- $3,585
Why does this matter to us?
This matters because gaps tend to fill, especially the CME bitcoin gaps.
I don't have the numbers in front of me right now but I remember reading something like 90% of all CME bitcoin gaps have filled at this point.
Which means, when there is a CME gap, there is a high probability that it is going to fill.
Especially if you give it some time to play out.
Just recently we saw an example of a rather large CME gap that filled right around the halving...
Check it out:
(Source: https://www.tradingview.com/x/kDeneclZ/)
As you can see, bitcoin gapped down to $8k on the CME chart, and then rallied right back up near $10k over the following days to ultimately close that gap.
Seems like some rather powerful trading knowledge to add to your arsenal, no?
Which one of these gaps is going to fill first?
Now that we know there is a high probability of these things filling, lets guess which one we think is going to fill next...
I think we would all love to see that $11,740 CME gap fill next, but it may not quite play out like that.
My personal opinion is that the gap down around $7,625 will be the next gap to fill.
The reasons I think that are mostly due to a lot of technical indicators currently indicating that bitcoin is overbought in the short term, which means we are due for a pullback.
Plus we have a stock market that may be starting to roll over as well and bitcoin has been trading more or less with stocks for much of the past 3 months.
Combine that with the fact that bitcoin saw about a 25% dip roughly 3 weeks after the last halving and we have several indicators pointing to a dip possibly being our next course of action.
That being said, bitcoin could defy all those odds and just keep climbing.
The fact that so many people are expecting a dip, myself included, possibly means that it won't be coming.
What do you think, which CME gap does bitcoin ultimately fill next?
Stay informed my friends.
-Doc