Bitcoin CME gaps are filled 95% of the time, a study found out. Currently, there is a bitcoin CME gap at $23k. Many investors use these gaps to predict the future price of bitcoin.
What are bitcoin CME Gaps?
CME gaps of bitcoin are interval or unfilled gaps on the chart, which are caused by the sharp movement in the price of bitcoin in either direction. In an upward trend when the highest price of any candle is lower than the lowest price of the following candle, a CME gap is generated. In the case of the downward trend when the lowest price of any candle is higher than the highest price of the next candle, a CME gap occurs.
Most of these gaps form during the weekend because bitcoin moves while the CME Bitcoin futures market is closed after the market hours. On basis of historical data almost every gap has been filled. A study about Bitcoin CME gaps showed that these gaps were filled 95% of the time. The next direction of bitcoin can be determined by these gaps because only a few gaps are open at a time and bitcoin revisits the gap. A lot of traders use Bitcoin CME gaps to predict the bitcoin’s direction.
Bitcoin CME gaps can play a key role for prediction of bitcoin’s next move.Currently, a CME gap is present at $23k and a constant drop in the bitcoin price indicates that bitcoin is going to correct this gap. The current gap is lower than the bitcoin price nowadays so it is more likely that bitcoin will drop drown to fill the gap. So traders who are bullish on bitcoin should reconsider their decision.
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