Bitcoin's Weekend Surge Forms Another CME Gap, Signaling Possible Drop Back
History suggests the gap, located in the $84,000–$85,000 range, is likely to be filled.
As spot Bitcoin (BTC) pushed higher over the weekend reaching a high of $87,800 on Monday, another gap emerged between CME futures' closing price on Friday and the start of the new week's trading.
The futures closed at $84,190 at the end of the last week and opened about $1,000 higher at $85,160. That sets the stage for a drop back because bitcoin has developed a tendency to fill these CME futures gaps.
As of mid-March, it had filled the most recent gap, which was created during the November rally following President Donald Trump’s election victory. That gap was fully closed when bitcoin dropped to $76,700 in mid-March.
The gaps occur because spot bitcoin trades 24/7 while CME futures operate only 23 hours a day, Sunday through Friday. When there’s a significant price movement during the CME’s off-hours, a gap forms between the previous close and the next day’s open.
Historically, bitcoin has often retraced to fill such gaps. Based on this pattern, it’s likely that bitcoin could revisit the $84,000–$85,000 range in the near term.
