Cryptocurrency
Bitcoin Future Flash Crashes by $1,000 to Fill CME Gap: Cleared for Takeoff
As reported by NewsBTC, “The Friday before last, the Bitcoin futures contract on the Chicago Mercantile Exchange (CME) closed the week at $8,715. It was a strong performance, especially considering that on Wednesday of that week, the leading cryptocurrency had plunged to $7,300 in a flash crash event. “The thing is, shortly after the CME closed up shop […]
As reported by NewsBTC, “The Friday before last, the Bitcoin futures contract on the Chicago Mercantile Exchange (CME) closed the week at $8,715. It was a strong performance, especially considering that on Wednesday of that week, the leading cryptocurrency had plunged to $7,300 in a flash crash event.
“The thing is, shortly after the CME closed up shop for the week, Bitcoin rocketed higher. As you well know, the cryptocurrency reached as high as $10,600 as a monumental influx of buying pressure allowed BTC to post its highest daily gain since 2011, at 42%.
“Thus, when the CME’s futures opened on Monday morning, a gap of around $1,000 was created. While this may not mean anything in itself, Bitcoin has had a history of filling the gap, moving down or up to prices where the CME’s market didn’t trade at. As such, analysts have been calling for BTC to fall to $8,600 to ‘fill the gap’ for over a week now.
“And on Tuesday morning, these traders got their wish granted….
“…According to a number of analysts, this gap-fill now means that Bitcoin is cleared for takeoff. Popular technical analyst ‘Escobar’ argued earlier this month that before Bitcoin can continue its bullish advances, it will need to fill the gap…”