However, Daan also noted that this gap should not be considered in play unless Bitcoin drops below $111,000. But if that happens, the futures chart could drag spot prices lower and turn recent strength into weakness.
A CME gap occurs because the Chicago Mercantile Exchange does not trade over the weekend, unlike the spot Bitcoin market, which operates 24/7. When Bitcoin makes a big move on Saturday or Sunday, CME futures reopen on Sunday evening at a different level than they closed on Friday, and this leaves an empty gap on the price chart.
According to Daan Crypto, if that were to happen here, then the entire structure would look pretty bad in the short term. However, this might be one of those very few gaps that never closes or not until months later. This would most likely be the case, unless Bitcoin breaks below $111,000. A dip below $111,000 could ultimately see Bitcoin losing the $110,000 price level again.
At the time of writing, Bitcoin is trading at $116,380, up by 1.4% in the past 24 hours.
