Bitcoin jumped over the weekend, leaving a gap in CME futures that may signal a short-term price drop.
- Bitcoin rose near its all-time high of $123,000 over the weekend.
- A price gap formed on CME futures between Friday and Monday.
- Traders are now watching closely to see if the gap will close.
Bitcoin Price Surge Leaves a CME Gap
Bitcoin traded as high as $119,000 on Monday after closing at $117,430 on Friday, forming a price gap on CME futures. This kind of gap happens because CME bitcoin futures don’t trade over the weekend. If the price changes a lot in that time, it creates a difference between the last price on Friday and the first price on Monday.
What the Gap Could Mean
In the past, CME gaps have often been filled soon after they appear. That means bitcoin’s price could move back down to around $117,430. According to trader Daan Crypto Trades, most previous gaps like this have closed quickly, but this one might take longer because the price moved further. Bitcoin is now entering price discovery, a stage where the market explores new highs.
Will Bitcoin Keep Rising?
Bitcoin is getting close to its all-time high of $123,000. If it breaks that level, it could rise even more. But if the gap does get filled, traders might see a short-term drop. Daan said the gap could act as a reversal point, but only if bitcoin falls near or below $120,000 again. Many traders will be watching the U.S. market open on Monday to see how things unfold.
Understanding CME Futures
CME bitcoin futures are contracts that track the price of bitcoin without the need to trade the actual coin. They operate for 23 hours a day from Sunday to Friday. Price gaps can form during the one-hour daily break or over the weekend. These gaps matter to traders because they can hint at future price moves.
Source: coindesk.com
