U.Today – The price of is losing more than 2.5% in the cryptocurrency market over the course of today’s trading session, falling below the key $60,000 mark. As is naturally the case, the entire market is also in deep red, with a total loss of almost $100 billion in capitalization, and liquidation during the day was subject to positions worth twice that amount.
However, amidst the negative market sentiment, a notable event occurred. Today’s price drop allowed BTC to close a gap on the BTC price chart on the CME exchange for June 28. On that day, Bitcoin futures opened at $62,085, 2.8% above the previous day’s closing price, leaving an unclosed gap on the BTC price chart1.
In financial and cryptocurrency markets, price gaps occur when an asset opens significantly higher or lower than its previous closing price, creating a gap on the chart. These gaps often act as magnets for future price movements, as traders anticipate that the asset will eventually return to the gap level to “close” it.
The importance of CME gaps for Bitcoin lies in their predictive power, as market participants closely watch these gaps for potential trading opportunities.
The closing of a bearish gap can be considered a bullish signal for BTC. It indicates that the market has resolved an imbalance, which could pave the way for a price rally.
While the current market decline may seem negative at first glance, the closing of the CME gap could suggest a positive outlook for Bitcoin in the near future.
This article was originally published on U.Today
