Bitcoin (BTC) has fallen 10% to $ 86,300 this week, leaving a prolonged negotiation period between $ 90,000 and $ 110,000.
The so -called breakdown of the bearish range makes merchants closely examine the graphics to obtain clues about where the total sale can boost the prices below. One of the key levels under scrutiny is the “fugitive gap” in CME Bitcoin’s futures below $ 80,000, which formed three months ago.
A gap is a blank space in a price table between the closure or the high price on a specific day and the next opening price, which means that there was no commercial activity at intermediate prices. When the gap appears in an established trend, it is called a fugitive or continuation gap.
Unlike the Bitcoin spot market, which is open 24 hours a day, 7 days a week, CME Bitcoin Futures exchanges 23 hours a day from Sunday to Friday. The market opens at 5 PM CT (23:00 UTC) and closes for an hour of maintenance the next day at 4 pm
As Bitcoin’s rally accelerated after the electoral victory of November 4 of President Donald Trump, the next day a fugitive gap appeared in the future CME the next day. The prices were opened the next day to $ 81,210, significantly above the maximum election day of $ 77,930.
It is widely sustained that price gaps are finally filled, with merchants who buy and sell the asset in the unre translated area. The process is often seen as a natural market behavior, which reflects a return to balance.
“Historically, CME gaps are eventually filled, and it is generally difficult to say when,” said Nanandergaard, Nansen’s research analyst in a telegram message. “The recent unexpected events are the most important reasons why we have seen these great movements down and without them I think we would not really be looking at the CME gap.”
Nansen risk indicators have recently “gone at risk”, so it would not be surprising if the CME space is filled, Sondergaard said
The theory of technical analysis, however, suggests otherwise. He says that the common gaps, which often occur during regular trade, and exhaustion spaces, which appear during trends reversions, usually quickly fill. In contrast, the probability that fugitive gaps are filled is relatively low.
It is worth noting that a gap between February 24 and February 25 has formed as prices abandoned prolonged consolidation. Which of these holes will be filled first is still uncertain?
Update (February 27, 12:51 UTC): Add the falling word to the first bullet point.
