Bitcoin PA to Fill CME Gap UPDATE - Extraordinary GamesLet me explain - A CME gap, or Bitcoin CME gap, is the difference between the trading price of Bitcoin futures contracts when the market closes on Friday and reopens on Sunday. This gap occurs because the Chicago Mercantile Exchange (CME) is closed over the weekend while Bitcoin's spot market remains open, leading to price movements that are not reflected in the futures market until it reopens.
CME is old School Traditional Finance that uses Bitcoin. In fact, CME Group first started Bitcoin futures trading on December 18, 2017.
This was Way back when TradFi was putting Bitcoin down as a "Ponzi Scheme" and not many people had even heard of it.
And through its history, the CME Bitcoin Futures has often created Gaps for the reasons above. And these Gas ALWAYS Get filled. At Times, Rapidly as PA seems to bizarrely retreat to the Gap, Fill it and bounce back rapidly.
This can all be seen VERY clearly on the BTC1! ticker in TradingView. Go back through its history, you will see what I mean.
The Current Gap is, however, being fought over Very Hard by Bulls and Bears.
The CME Gap chart above shows you How Bulls have pulled the PA Back up just above the Gap.
Teasing the CME Bears
In my mind, I can see the Two Teams, New Age Finance wearing BITCOIN T-Shirts and the TradFi crew, wearing the "CME Gaps always get filled because we are Kings" T Shirts
The Daily chart shows us how the 200 day SMA acted as support just above the Gap
And the Weekly chart shows us how that 50 SMA ( red) just just out of reach on the other side of the Gap.
If we look at the Range from March - Sep 2024, we can see similar patterns.
The 2 rounded Tops , the slide down to a low.
We are currently seeing a bounce back, off the TOP of the CME Gap....PA can smell that gap, the Gap can smell BTC PA, just cannot touch it
This bounce may or may not reach the mid 90K before turning down again but it will turn down again, I am sure of that. PA is not ready to reach for New ATH
But See that Long wick down in summer 2024 ? This is what may happen to fill the Gap.
Ultimate though, We are waiting for the Weekly MACD to reach Neutral. THIS is what gives PA strength to reach higher, to a new ATH.
The CME would like that Gap filled BEFORE PA pushes up and out of Range
Because of this sharp drop in price recently, and if it continues, MACD could reach neutral by End of April ! and not June as previously
But to sustain this angle of decrease, PA would have to go as low as 55K, reaching the Long Term rising support ( Dotted line of the weekly chart. This is also where the 100 SMA ( Blue) Sits
I do not think that will happen but if PA Drops below 70K, I will begin to reevaluate my positions.
So, I expect Pa to bounce around for a while, as in the previous Range in 2024
For now, we see the Bulls and Bears Teasing each other over this CME Gap.
Who will win this battle. Will the BTC Bulls submit and allow the gap to be filled ?
I hope so, I have a buy order at 78200 ;-)
It maybe one of the last chances to buy BTC that cheap
Exciting days ahead
COME ON BTC BULLS>...
