CME Futures Gap Suggests Bitcoin Near Target of $18,000

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CME Futures Gap Suggests Bitcoin Near Target of $18,000

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Bitcoin trader and self-styled “shitcoin trend trader” Rampage claims that “gaps” in the Bitcoin futures market on the Chicago Mercantile Exchange (CME) suggest that Bitcoin prices could soon rise to meet those gaps at prices of USD 18,000.

With price indicators of the top cryptocurrency by market capitalization heating up in recent weeks, backed by strengthening fundamentals and technicals, more and more segments of the market are convinced that this is the consolidation phase leading to positive momentum in the medium and long term.

Rampage is one trader who makes USD 10,000 predictions look conservative, but his point that the gaps in the CME Bitcoin Futures charts that are yet to be filled, offers some legitimacy.

“Filling the gap” as it is referred to in financial markets, is a process in which an asset eventually returns to former price levels where a void has formed in a chart. This typically happens when the asset’s value quickly rises or falls when trading is offline — and this happened to CME futures when Bitcoin prices fell. The resulting gap is usually far away from the asset price, but can act as magnets for price action.

The most recent example for Bitcoin was the flash crash¬†from USD 8,300 to USD 6,300, in which a sudden and extreme sell-off filled the gap left by Bitcoin’s surge from April.

 

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