- Bitcoin approaches its all-time high after a weekend surge.
- A price gap forms on CME bitcoin futures due to the difference between Friday’s close and Monday’s open.
- Historically, bitcoin prices often retrace to fill these futures gaps.
- Traders monitor whether strong market momentum will fill the gap or lead to new highs without retracement.
- Expert notes the gap could signal a price reversal if closed, but strong trends may leave it open in the short term.
Bitcoin moved close to its record high over the weekend, reaching a price just below $123,000. This rise left an unfilled gap in the CME bitcoin futures market, as the contract settled at $117,430 on Friday and re-opened at $119,000 on Monday.
The CME’s bitcoin futures, which are cash-settled contracts tracking the broader cryptocurrency price, only trade from Sunday evening to Friday evening, pausing for an hour each day. Large price changes during this pause or over weekends can create what traders call a “CME gap,” where the futures price jumps between sessions.
According to crypto trader and investor Daan Crypto Trades, bitcoin often retraces to fill these gaps, sometimes within hours or days. Daan stated on social media, “Most previous gaps that were created did close within the same day, but this one moved a bit further than those.”
Daan explained that bitcoin is entering a “price discovery” phase, meaning the asset is trading at levels higher than ever before. When this happens, gaps can become “runaway gaps,” where market strength prevents a quick return to earlier prices. “I’d recommend keeping an eye on this gap,” Daan said, adding, “If price were to close it, it could make for a decent reversal area. But I wouldn’t fully bet on it closing until price gets at least within a one to two percent proximity again, below $120,000 or so.”
As the U.S. market opened Monday, traders closely watched to see if bitcoin’s momentum would fill the futures gap or carry prices beyond $123,000, creating a new record and potentially leaving the gap open for now.
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