Bitcoin (BTC) surged over the weekend, reaching a high of $87,800 on Monday. However, this price action created a new gap between the closing price of CME futures on Friday and the opening price on Sunday, signaling the possibility of a pullback.
CME futures closed the previous week at $84,190 and opened around $1,000 higher on Sunday at $85,160. This gap is consistent with Bitcoin’s historical trend of filling such discrepancies in the market.
Earlier this month, Bitcoin closed the most recent gap that formed during November’s rally following Donald Trump’s presidential victory. The gap was filled when Bitcoin dropped to $76,700 in mid-March.
These gaps arise because while spot Bitcoin trades 24/7, CME futures are only available for 23 hours a day, from Sunday to Friday. Significant price movements during CME’s off-hours result in a gap between the previous close and the following session’s open.
Historically, Bitcoin has tended to retrace to fill such gaps, and current patterns suggest the cryptocurrency could revisit the $84,000-$85,000 range in the near term.
