These gaps have developed into frequently rebalanced self-fulfilling prophecies.
Currently, there are $35,000, $27,000, and $21,000 in the budget.
The Chicago Mercantile Exchange (CME) listed the #bitcoin (BTC) futures instrument as a product in December 2017. Since then, among other things, identifying institutional flow and interest has relied heavily on CME's BTC futures data. Nonetheless, there are currently three open gaps on the daily chart for BTC, two at the top and one at the bottom.
Weekend trading in bitcoin futures on CME was suspended. The discrepancy between the closing price on Friday and the beginning price on Monday, when CME trading resumes, is what the cryptocurrency world refers to as "CME gaps."
CME Bitcoin futures have been causing gaps on the weekends since their introduction in 2017. But, investors soon discovered that price frequently entered these gaps to rebalance the market. Investors consequently began to trade in anticipation of closing gaps, which led to the self-fulfilling prophesy.
The most current CME gap, which runs from $27,005 to $27,485, resulted from the crash on August 17. The two remaining gaps are 31% and 19% from Friday's close of $26,070, respectively. The CME gap to the bottom stretches between $20,330 to $21,110, while the one to the upside is between $34,445 and $35,180.
determining based on technicals which CME gap will be filled first
Since July 13, the price of bitcoin has been declining and has lost around 20%. Bitcoin is currently hovering around the $26,000 mark, making a slight comeback surge all but certain. Thus, the gap in the current CME will be filled first.
A decline is anticipated based on the daily chart's Relative Strength Index (RSI), which has entered the oversold region for the first time in more than nine months. This retracement will make an attempt to move higher in addition to filling the current CME gap between $27,005 and $27,485.
In exceptional circumstances, the price of bitcoin might surpass the $30,400 barrier for buy-stop liquidity, but it is unlikely to gain momentum and scale higher. If the situation with the price of Bitcoin does not change, a rising hash rate could force BTC miners to liquidate their holdings, destroying the recovery effort and starting a selling frenzy. In this scenario, BTC might plummet and peg the CME gap, which would range from $20,330 to $21,110.