Which Bitcoin CME Gap is going to fill first?
There are 3 CME gaps on the Bitcoin chart, which one is going to fill first?
Bitcoin trades all the time, it is never closed. For this reason there are never any "gaps" on the charts.
A "gap" is a space on the chart that the price skips over due to whatever the chart tracking changing prices while that particular market was closed.
Sounds confusing the way I worded it there, but it's not.
We see these "gaps" quite often with bitcoin and the CME futures products.
Since the CME has designated trading hours, while bitcoin is always open, there is quite often "gaps" that show up on the CME charts...
The most recent unfilled CME gaps can be seen here:
(Source: https://twitter.com/FeraSY1/status/1261660004425359361/photo/1)
You notice the blank spots on the charts there?
While we do quite often see gaps, there are only 3 still open from the last 2 years of trading...
Ones at:
- $11,740
- $7,625
- $3,585
Why does this matter to us?
This matters because gaps tend to fill, especially the CME bitcoin gaps.
I don't have the numbers in front of me right now but I remember reading something like 90% of all CME bitcoin gaps have filled at this point.
Which means, when there is a CME gap, there is a high probability that it is going to fill.
Especially if you give it some time to play out.
Just recently we saw an example of a rather large CME gap that filled right around the halving...
Check it out:
(Source: https://www.tradingview.com/x/kDeneclZ/)
As you can see, bitcoin gapped down to $8k on the CME chart, and then rallied right back up near $10k over the following days to ultimately close that gap.
Seems like some rather powerful trading knowledge to add to your arsenal, no?
Which one of these gaps is going to fill first?
Now that we know there is a high probability of these things filling, lets guess which one we think is going to fill next...
I think we would all love to see that $11,740 CME gap fill next, but it may not quite play out like that.
My personal opinion is that the gap down around $7,625 will be the next gap to fill.
The reasons I think that are mostly due to a lot of technical indicators currently indicating that bitcoin is overbought in the short term, which means we are due for a pullback.
Plus we have a stock market that may be starting to roll over as well and bitcoin has been trading more or less with stocks for much of the past 3 months.
Combine that with the fact that bitcoin saw about a 25% dip roughly 3 weeks after the last halving and we have several indicators pointing to a dip possibly being our next course of action.
That being said, bitcoin could defy all those odds and just keep climbing.
The fact that so many people are expecting a dip, myself included, possibly means that it won't be coming.
What do you think, which CME gap does bitcoin ultimately fill next?
Stay informed my friends.
-Doc
$7,625 seems like an easy one to fill at this time. Volume/energy has slowed post-halving. May see that $3,585 number too the more I look at the chart. Fascinating. Did not know there was a gap at that level. Good catch, friend! Hope you are well!
That's exactly what I am thinking as well. Seems the most likely one to fill first to me... Though, the $11,740 one is technically closer at this point.
You're all over it brother
Appreciate you sharing your knowledge.
I dont play the in between myself.
I dump fiat hard on the dips and try to keep learning.
"Didn't you always say that gambling's an honest trade?
No. I said poker's an honest trade.
Only suckers buck the tiger. The odds are all on the house.
Depends on how you look at it. I mean, it's not like anybody's puttin' a gun to their head now, is it?
That's what I love about Wyatt. He can talk himself into anything"
Peace
Where's Wyatt? Down by the creek, walkin on water...
I wish that Bitcoin fill $11,740 CME gap first but i also agree with your assessment that it is very likely possible that it will fill $7,625 first because it might be the last time we see Bitcoin this low.
It's been two years since we are in this bearmarket and i think it's the time for showing the world the next Bull market.
I wish Bitcoin do good this year but this coronavirus just made me doubt that this year we might not see a new all Time High of Bitcoin and alts too. Because of bad economic conditions.
Let's see what future holds for us
I think we will see new highs this year regardless of the virus.
Ye me too.
Nice info about this gaps :) Thanks!
Posted Using LeoFinance
You got it.
I think it will decrease. It may be less than 7 thousand.
Why do you say that?
25% aligns to $7625 so may be that is going to happen I think.
Yep, that's what I was noticing as well.
all of a sudden looking bullish may be the top level can get filled just like previously and dump back
It's possible, though if that were to happen it would be pretty significant dump to get back to that $7,600 number... larger than 25% anyways.
"The fact that so many people are expecting a dip, myself included, possibly means that it won't be coming." Exactly lol.. ain't that the way she usually goes ;)
Yep, it really is. Like George on Seinfeld, if I only do the opposite of whatever my first inclination is, I would have the perfect life!
lol great ep! Well I hope we both fall on the right side of things :)