An analyst has reported a Bitcoin CME Futures gap between $11,700 and $12,000 that arose after the strong crypto rally this year. With $12,000 being 70% above the current price level of low-$7,000s, there remains a considerable likelihood that Bitcoin could fill the gaps with prices rising towards $12,000. Bitcoin has a history of filling the gaps. Most of the CME gaps have been filled in the weeks after the creation of gaps.
Gaps in financial markets occur when assets do not trade at a certain price which results in gaps in order books and charts. Gaps are common in the bitcoin market. This is caused by the activity of Chicago Mercantile Exchange (CME). The organization closes on the weekends even though cryptocurrency markets operate 24/7. Coupled with the volatility of the cryptocurrency markets, this creates differences in price.
Data suggests that 95% of gaps in the CME’s Bitcoin market eventually get filled. However, there is little information on why the gaps get filled or why a correlation exists. In its latest report, venture capital firm Blockchain Capital revealed its expectations for Bitcoin to push past its $20,000 all-time high in 2020. Former Goldman Sachs partner, Mike Novogratz says he expects Bitcoin to reach $20,000 in 2021 at the latest. Other high-profile names in the cryptocurrency sector have expressed similarly optimistic outlooks for Bitcoin future prices.
Cardano (ADA) Founder and Ethereum co-founder, Charles Hoskinson says,
“After the FUD, news trading and manipulation clears out, we still have a global movement that’s going to change the world. We will see 10k btc again and welcome 100k. Crypto is unstoppable. Crypto is the future.”
Despite recent falls in prices, Bitcoin has achieved triple-digit gains since the bear market of 2018 bottomed out. Bitcoin’s $7,050 price represents a 127% increase from lows of $3,122 on 15, December 2018.
The bear market ended at lows of $150 in January 2015. This was months ahead of the supply-cutting event, Bitcoin halving which took place in July 2016. Another halving event is set for May 2020. Hopes are ignited for a change in price trends as the incoming Bitcoin halving approaches.
