Bitcoin now back trading above $115,000The recovery is not without its shadow. On the CME bitcoin futures chart a gap has opened. The spot market is now higher, but the gap remains. opens up a bearish scenario. The gaps are known to pull Bitcoin down in order to close them. And the latest one raises questions as how long this bullish momentum will last.
Bitcoin Opens Up Huge CME Gap
Crypto analyst Daan Crypto noted on the Social media platform X shows how Bitcoin started the week off with a massive CME gap, which has continued to rise since the opening of the futures. This is a significant gap, since it’s been awhile since Bitcoin has opened with a gap this large.
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This CME difference is shown below in the graph. It ranges between $110,000 to $111300. Gaps on CME futures Bitcoin’s trend often resumes at the same level as the gap, which is why gaps tend to close quickly. This time around, Bitcoin’s short-term price structure could degenerate into a downward trend.
Daan noted, however, that the gap would not come into play until Bitcoin dropped below $111,000 If that occurs, then the futures chart may drag spot prices down and make recent strength weaker.
What Does It Mean for Bitcoin
CME gaps are created because Chicago Mercantile Exchange (CME) does not operate over the weekend. This is in contrast to the Bitcoin spot market which runs 24/7. CME Futures are reopened on Sunday at different levels than the previous Friday. This leaves a gap in the chart when Bitcoin has a large move over Saturday and Sunday.
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Bitcoin is known to close these gaps, returning to its previous level before continuing on in the trend. Bitcoin’s latest $110,000-to-111,000 gap would be erased if Bitcoin were to retrace its steps to do so. recovery that pushed it to $115,000 Price will be brought back to a state of uncertainty.
Daan Crypto says that if this were to occur, the whole structure would be a disaster in the near future. This might be one very rare gap that will never close or may not even happen until many months down the road. If Bitcoin does not fall below $111,000, this is most likely to be the outcome. Bitcoin could lose its $110,000 level if it dips below $111,000
Bitcoin can only stay at $115,000 there’s enough buying pressure, The gap is not a problem in the near term. Next, it will be a test to see if buyers are able to maintain the momentum they have recently gained and continue pushing towards $120,000.
Bitcoin has risen by 1.4 percent in 24 hours to $116.380 at the time this article was written.
Chart from Tradingview.com, image from Pixabay
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Source: www.newsbtc.com
