Remaining CME Futures Gaps Hint At Bitcoin’s Next Potential Targets

Tony "The Bull" Severino

5 years ago

3 mins read

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Recently, a study was released that suggests that gaps left on CME Bitcoin futures charts are filled with as much as 95% accuracy, and often fill during the first week trading resumes.

Because of how accurate the data appears to be, pair of gaps remaining on CME Bitcoin futures charts could hint at where Bitcoin price heads next.

$7,600 or $11,900: Two Bitcoin Targets Based on CME Futures Gaps

Unlike other cryptocurrency exchanges that are open and trading around the clock, the Chicago Mercantile Exchange’s Bitcoin futures market is only open and trading Monday through Friday.

During the weekends, any significant price action often leaves a significant gap on the price charts of futures contracts for the first-ever cryptocurrency. These gaps, often become a target that price action almost always gravitates towards, with as much as 95% accuracy according to a recently released study.

Because these gaps fill with such accuracy, they’ve become a useful tool for crypto traders and analysts watching for where to take profit, or where to enter a trade.

Bitcoin price is currently trading at around $7,900 after an inverse head and shoulders pattern confirming took the price of the crypto asset to $8,400 before dropping back down to current levels. The move pushed Bitcoin out of the trading range where lows were set around $6,500.

https://twitter.com/josh_rager/status/1215611343526670336?s=21

Bitcoin price may have lower to fall, as there’s a CME futures cap left unfilled at $7,615. However, the cryptocurrency may have flipped resistance as support at $7,800, which could suggest that the gap will remain unfilled for some time.

While a previous study did reveal that most CME gaps are filled within the first session trading resumes, or at least the first week of trading, oftentimes, gaps go on unfilled for an extended period of time, and some, never get filled at all.

There yet remains another CME futures gap open since August 2019, back when Bitcoin price was trading over $10,000. If Bitcoin has indeed bottomed and can maintain the recent bullish momentum, it could eventually make its way higher and retest former highs, taking the price of Bitcoin to a CME gap located at $11,855.

Such a rise would be over a 50% gain from current prices. While that may seem unrealistic, the cryptocurrency did go on a 350% run in 2019.

Depending on which gap gets filled next it could signal if the downtrend has completed or not. Touching $7615 would invalidate many trader’s support levels and could cause a deeper drop. Whereas if Bitcoin price reaches the higher of the two gaps, the downtrend would likely be concluded as over and a bull run could finally resume once again.

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.

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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.
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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.