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

Share Article

The Chicago Mercantile Exchange (CME) Group is a global market company that is the owner of exchanges in both New York and Chicago. It launched the initial futures market for BTC in Dec 2017. Additionally, it has announced that it will begin options trading for the cryptocurrency in Q1 of 2020.

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.

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.

Did you know you can trade sign-up to trade Bitcoin and many leading altcoins with a multiplier of up to 100x on a safe and secure exchange with the lowest fees — with only an email address? Well, now you do! Click here to get started on StormGain!

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Share Article

Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

Follow Author

Daily signals, Bitcoin analytics and traders chat. Join our Telegram today!

Let’s Go

A step-by-step guide how to trade Bitcoin profitably

Learn now