Last Friday, the Chicago Stock Exchange (CME) futures contract closed the week at $ 8,715. This was a strong performance, especially considering that on Wednesday the leading cryptocurrency dropped to $ 7,300 in a lightning storm.
$ BTC CME Futures closed today at $ 8715
The current price of bitcoin varies in the upper $ 9ks, up to the high today over $ 10,500
All the boys with the gulf will flourish when CME futures open back on Sunday night, with a current $ 1,000 difference up to $ 8715 pic.twitter.com / Kpak5mzQCT
– Josh Rager 📈 (@Josh_Rager) October 26, 2019  The thing is, shortly after CME closed the store for the week, Bitcoin shot up. As you well know, cryptocurrency reached $ 10,600, as the monumental influx of buying pressure allowed BTC to report its highest daily profit since 2011 of up to 42%.
Things have calmed down since then. But Bitcoin remains at $ 9,700, up more than 10% when the CME market closed on Friday afternoon.
Shortly (minutes after posting this) Bitcoin futures for CME will open. Because of the tremendous volatility we saw after the close of Friday, there will be a huge gap printed, about $ 1,000 at the time of writing.
Will Bitcoin Fill the Gap?
This may not mean anything on its own. But Bitcoin had a history of closing the gap, moving down or up to prices where the CME market did not trade. Just look at this chart from Richard Heart which shows that almost every single daily CME void is filled by Bitcoin in the weeks following the creation of the void.
The exact explanation for why this happens, or why this correlation exists, varies. Many argue that this is pure coincidence, while others believe that futures markets play a big role in the way BTC trades.
Here's a story with all the gaps circular in CME futures #Bitcoin as they started the day $ 20k #BTC All Time High.
They all filled in with the exception of 1 under us at $ 8500, and one we just made over us 7 days ago at $ 11,195. pic.twitter.com/J7mVffmaLX
– Richard Heart (@RichardHeartWin) July 19, 2019
While there seems to be a historical priority supporting the idea that bitcoin will be lower to fill the gap above, it is likely that the one to be printed will be a "breakthrough" that has been abandoned by the growing cryptocurrency market.
First, failures in CME futures are not "real omissions" per se. According to Investopedia's definition of a market chasm, "there the stock price (or other financial instrument) moves sharply up or down, with little or no trading between them, due to major fundamental or technical factors." The omissions show that the Bitcoin markets CME is a by-product of its closure over the weekends, which is difficult to fit into the bucket of "major or technical factors"
And second, there are clear bullish signs that at first glance indicate that the downside, at least a quick move to absorb at $ 8,700 (and thus began It is highly unlikely. According to previous reports from this outlet, the Byzantine general notes that since Bitcoin owns $ 9,300 where the Kijun Line is located in Ichimoku Cloud, he believes that "the graph is as bullish as it gets."
contradictory stories about "gaps always fill" and "gaps mean nothing", it is unlikely that it would be reasonable at this time to make decisions by measuring gaps.Featured Image from Shutterstock