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Author: Admin | 2025-04-28
How often have you heard this term “CME gap” on Twitter, Reddit and other social media platforms. People usually refer to CME gaps during and after the weekends. “There is a CME gap at $62000”, “Bitcoin is about to make a huge gap on the CME chart”, “gap has been filled” and so on. Traders mind the gaps often.So what does CME stands for and what is a CME futures gap? Why it matters to Bitcoin and how do you spot gaps on the Bitcoin chart? Also how are gaps formed in first place and how often do these CME gaps get filled? Here we’ll explain everything in detail.Before we analyze what Bitcoin price gaps are let’s first see what CME is?What CME stands for?CME Group Inc – CME stands for Chicago Mercantile Exchange. It is the world’s largest financial derivatives exchange. This futures platform allows one to trade variety of asset classes like: agricultural products, energy, stock indices, fiat currencies, interest rates, real estates, metals and even they have futures trading options for weather.In late 2017 CME launched trading of Bitcoin futures contract. Currently in 2024 Bitcoin (BTC) and Ethereum (ETH) are the only two cryptocurrency available for trade on CME. According to CME group the daily traded volume of Bitcoin on this platform is more than 15000 BTC. That’s over a Billion USD at current price.Alright! Now what is a price gap and what constitutes a gap on a chart?What is a price gap?To put it plainly; A gap is simply an area on a chart that has no trades. It is basically an empty space between the close and open price of an asset. In this Bitcoin charts you can see there is an unfilled gap from 9666 to 9920.chart from 2020A gap is an unfilled interval on a chart. It usually occurs when price sharply moves up or down with very little to no trading occurred in between. Sometimes a gap may also form when the market closes and this is how the CME gaps are usually formed.CME Bitcoin futures gap: Well, Bitcoin (BTC) is being traded 24/7 on majority of crypto exchanges, but not on CME. Bitcoin does not trade during weekends on CME and this causes gap on CME chart once the trading resumes on the platform.The CME gap on Bitcoin typically occurs when the price of Bitcoin moves after the CME futures market is closed. For instance let’s take a look at the below scenario. Back in 2020 the rally that caused a massive CME futures gap from $9,600 to $9,900.On Friday July 24th the daily candle of Bitcoin closed at $9620. This is when the CME futures market closed and stopped trading. Meanwhile during the weekend Bitcoin was traded on other exchanges.Once CME opens; the trade on CME resumes at the same price as other Bitcoin exchanges thus creating a gap on the CME chart.On July 27 Monday the daily candle of Bitcoin opened at $9920 and closed at $10900. From there
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