CME Futures Gaps Pile Up, Which Will Bitcoin Price Fill Next?

Tony "The Bull" Severino

5 years ago

2 mins read

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Bitcoin price is closing in on $11,000 after a period of extreme volatility. Last week, the crypto asset fell below $10,000 in what many are calling a bear trap, and quickly bounced from lows around $9,400 back up the current price of $10,900 where it is currently trading.

Along the way back up, yet another CME Future gap was created, making four total gaps that are just waiting to be filled. With the leading crypto asset trending up once again, which CME Futures gap will Bitcoin end up filling next?

Unfilled CME Futures Gaps Could Help Predict Bitcoin Price Action

The crypto community is often torn over CME Future gaps and their significance in Bitcoin markets. Many believe that these gaps always get filled, and Bitcoin price cannot move onto its bull run without first filling the CME Futures gaps left lower from how fast the asset had risen after it left its bear market bottom behind.

According to crypto analyst CastilloTrading, there are now four CME Futures gaps that exist on Bitcoin price charts, each just sitting waiting to be filled by more recent price action.

$BTC CME Futures Gap *UPDATE*

New gap has been created from $10,400-$10,100. No gaps have been filled in over two weeks, shows that recent PA how been fairly weak.

>$11,950-$11,700
>$10,400-$10,100
>$9,000-$8,500
>$7,200-$7,450

Always good to keep an eye on these levels.$BTC pic.twitter.com/sqwL17m1MH

— Castillo Trading (@CastilloTrading) September 6, 2019

One CME Futures gap was due to the most recent Labor Day weekend rally, between $10,100 and $10,400. Due to the close proximity to current price action, this could be the most likely target to get filled. Holidays, like Labor Day, have been statistically shown to result in strong price action and rallies – exactly what occurred this past holiday weekend.

Below current prices, lies two CME Future gaps: one between $8,500 and $9,000 – a target that many have been watching as a place buyers are waiting to buy the dip – and another between $7,200 and $7,450.

Above here, the next highest gap would be between $11,700 and $11,950. Should Bitcoin price take out the higher target, it is unlikely that Bitcoin price will ever return to fill the lowest gaps, as a break above $11,300 would take Bitcoin up out of its symmetrical triangle and resume its bull run. The symmetrical triangle target would take Bitcoin price to a new 2019 high, breaking above $13,800 where it was rejected from back in June.

Such a powerful example by bulls would likely reassure the market that Bitcoin’s bull run is back on, and cause serious FOMO that would propel Bitcoin price to set a new all-time high and send the asset parabolic once again.

Gaps are often left on charts after extremely powerful moves that occur after trading sessions have closed, for example, on weekends or holidays. This is exacly what happened recently with Bitcoin price, leaving the fourth gap on CME Futures price charts. Gaps like the ones on Bitcoin price charts are more commonly found in speculative assets like BTC and other crypto-assets.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.