This Morning’s Bitcoin Rally Filled The CME Futures Gap, Now What?

Tony "The Bull" Severino

Last Updated: May 14, 2020 4:00 pm

2 mins read

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An early morning rally in Bitcoin price filled a CME Futures gap to the upside leftover from the weekend’s post-halving profit-taking drop.

Now that the gap has been filled, where may Bitcoin be headed next in the days ahead? And why are gaps something crypto traders need to continue to pay close attention to?

Bitcoin CME Futures Gap Filled With Latest Early AM Rally

In the earliest hours of the morning, when trading volume is at its lowest, Bitcoin price made yet another push to try and take out $10,000.

The powerful overhead resistance is the key to unlocking Bitcoin’s bull market, but the crypto asset continues to struggle with the oft-tested area.

Last week, the leading cryptocurrency by market cap breached above $10,000 momentarily but was rejected back down. Over the weekend, Bitcoin price collapsed from highs to as low as $8,100, leaving a massive price gap on the price charts of BTC Futures trading on the Chicago Merchantile Exchange, better known as CME Group.

CME volumes have been exploding prior to the halving, and the institutional focused platform continues to have a massive influence over Bitcoin price action.

Now that the gap has been filled to the upside, Bitcoin price often drops after. Gaps to the upside and downside remain unfilled, which could provide logical targets in the future for the cryptocurrency.

What Are Gaps And Why Do They Matter?

Gaps are voids left on asset price charts went powerful price movements take place outside of normal trading hours.

CME Group is an institutional platform, trading Monday through Friday. When the trading session ends on Friday, that’s it for CME for the weekend.

But with Bitcoin, the crypto market never sleeps, and the asset keeps on trading at spot exchanges.

When trading resumes on the next trading session, a gap is left behind. These gaps are filled with extreme accuracy, typically within the first week after they’re added to price charts.

It has caused them to be an important factor that all crypto traders need to pay close attention to.

Gaps are commonly found on the prices of speculative assets, where irrational exuberance and extreme fear causes prices to deviate substantially from reality.

Not all gaps are filled, however, or at least not quickly. A gap still remains at $3,500, while another is above $11,000. Given Bitcoin‘s recent volatility and price action, filling both gaps isn’t’ out of the question, and could provide targets for the crypto asset to trade towards in the days and months ahead.

Featured image from Pixabay

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.

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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.
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.