bitcoin price has fallen to a low of $59,604 today, marking a 4% decline. According to several renowned cryptocurrency analysts, this move was largely driven by the phenomenon known as the CME gap, a fundamental concept in bitcoin futures trading on the Chicago Mercantile Exchange (CME).
Why is bitcoin down today?
A “CME gap” is a term used to describe the price gap that emerges on the CME bitcoin futures chart. Unlike bitcoin spot markets that operate 24/7, the CME bitcoin futures market only operates five days a week and is closed on weekends and holidays. This difference in trading hours can lead to a price discrepancy between the last traded price on Friday and the market opening on Monday.
Today's bitcoin price action can likely be directly linked to the closing of such a gap. Over the weekend, a notable gap formed. Daan crypto Trades (@DaanCrypto), a prominent trader and analyst, x.com/DaanCrypto/status/1808428439889682688″ target=”_blank” rel=”nofollow”>confirmed This is explained by x: “bitcoin closed most of the gap that was created over this weekend. On Monday it also closed the gap that was created a week ago and peaked right then. (…) The gap has now completely closed. There are no major gaps in the vicinity at the moment.”
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Other market participants x.com/Washigorira/status/1808366145025569160″ target=”_blank” rel=”nofollow”>echoed This sentiment. crypto titan (@Washigorira) indicated the bullish potential following the gap closure, stating on x: “CME bitcoin Futures Gap Filled! As expected. Nothing stopping btc now. Time to sell.” This view suggests that filling the gap could clear resistance for bitcoin price, potentially leading to a rally.
Cryptocurrency analyst Ninja (@Ninjascalp) confirmed: “This was just an attempt to fill a CME gap, guys (…) it’s a bullish sell. Everything is going to be okay. Don’t panic.” Another analyst x.com/SpeedRacer689/status/1808447187644244220″ target=”_blank” rel=”nofollow”>commented “For anyone wondering who is driving the btc market in the short term, it’s the market makers! There was no way they were going to leave a gap at $1,650 on CME starting over the weekend.”
What to expect now?
Marco Johanning x.com/themarcojo/status/1808401168202166307″ target=”_blank” rel=”nofollow”>Offered A more nuanced view, emphasizing the precarious nature of the current price level. His commentary via x highlighted both the potential and the risk.
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“Main scenario: bitcoin has lost the trend line and closed the CME gap. The price is at a local support, from which it can now pump. That would be a typical mid-week reversal with liquidity behind the equal highs at 63.8k as the main target. However, the current level is also fragile. If the support is lost, we could see another 1k-2k drop. I can hardly wait for bitcoin to finally leave this exhausting temporary capitulation range,” Johanning stated.
Alpha dōjō analysts (@alphadojo_net) x.com/alphadojo_net/status/1808442752146805095″ target=”_blank” rel=”nofollow”>provided An in-depth analysis that dissects the day’s price movement and possible future trends. Their report highlighted the critical levels traders are watching: “The analysis is pretty simple: btc needs to bounce here, or if it loses the $60k level, prices are likely to go much lower. As long as we don’t break below $60k or break above $63.5k, it’s best to take it easy and wait for a clearer direction.”
They also noted a significant liquidity pool around the $60,000 mark that could act as support, while noting that a strong selling presence above this level at $64,000 could limit bullish moves. “On the order books, the sell side remains very strong, while the supply side is not showing any uptick.”
At the time of writing, btc was trading at $60,388.
Featured image created with DALL·E, chart from TradingView.com
