CME Gap Filled in Unusual Price Movement — Is This Bullish For Bitcoin?

The new derivative, however. is still waiting on regulatory approval, thus does not have an exact launch date. The CME Group has stated that the options will allow for several alternative trading strategies, along with authorizing traders to use margin offsets in order to make savings on margins. On Oct 25, the price of Bitcoin initiated a rapid price increase which created an unfilled gap in the CME futures chart. Today, the gap was filled, possibly indicating that future increases are in store for the price. Crypto trader @satoshiiHeavy posted the chart, stating that the dump was not present on other exchanges besides CME.

This is insane TBH

CME gap filled

Price DUMPED but not on any exchange.$BTCUSD

whats your take?@TheCryptoDog @nebraskangooner
@Rnb010 @ChartVampire @SmartContracter @CredibleCrypto pic.twitter.com/zToTbRCl4j

— 卄乇卂ᐯㄚ (@SatoshiiHeavy) November 5, 2019

What are the implications of this movement? Will BTC continue moving higher? Let’s analyze.

CME Breakaway Gap

A breakaway gap transpires when the price of an asset breaks out above a resistance area with significant volume. During the Oct 25/26 rapid upward movement, the CME chart created a breakaway gap from $8,700 to $9,600. Afterward, the price created a trading range between $9,000-$9,600. However, on Nov 5 at 03:00 ET, the price dumped all the way back to $8,400 before creating a massive lower 10% wick and moving back inside the range. While doing so, it filled the previous breakaway gap. BeInCrypto previously stated that the price is likely to fill the gap before moving higher. Looking at the daily time-frame, the current hammer looks very bullish, especially since its wick has been created inside a support area, indicating that the bulls are not allowing the price to retrace further. Since the gap is filled, this can be read as a bullish sign and a suggestion that the price will continue moving upward reaching new highs. If it does so, the closest resistance areas are found at $11,000 and $12,000. Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.

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