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What is CME GAP and why it is important for Bitcoin?
You probably heard about #CME gap filling but have no clue what it is and why it is so important for #Bitcoin or the whole crypto market, Here is a thread to explain 𧔠đ
ââRepost will be appreciated ââ
âđšđ»đ±đČđżđđđźđ»đ±đ¶đ»đŽ đđ”đČ đđ đ đđźđœ đ¶đ» đđ¶đđ°đŒđ¶đ» đ§đżđźđ±đ¶đ»đŽ
Imagine you're watching your favorite show, and it goes off the air for a weekend, but when it comes back, the episode starts with a completely different scene than where it left off. That's kind of what happens with Bitcoin's price on the Chicago Mercantile Exchange (CME) when it creates what's known as a "CME gap."
âđȘđ”đźđ đ¶đ đź đđ đ đđźđœ?
A CME gap in Bitcoin's chart occurs because while Bitcoin trades 24/7 on most platforms, the CME, where Bitcoin futures are traded, has specific trading hours and is closed on weekends. Here's how it works:
Friday Close: Let's say Bitcoin's price on CME closes at $30,000 on a Friday.
Weekend Movement: Over the weekend, Bitcoin might jump to $33,000 due to news or market sentiment, but this isn't reflected on the CME because it's closed.
Monday Open: When CME opens on Monday, Bitcoin doesn't start trading at $30,000 where it left off. Instead, it begins at $33,000, creating a gap on the price chart between $30,000 and $33,000.
âđȘđ”đ đđŒ đ§đ”đČđđČ đđźđœđ đ đźđđđČđż?
Price Reversion: Often, traders watch these gaps because there's a tendency for Bitcoin's price to move back to fill this gap, meaning it might drop back to $30,000 or close to it before continuing its trend. This happens because traders might see the gap as an overreaction or an opportunity.
Trading Strategy: If you're trading, you might bet on Bitcoin moving back to fill this gap. For instance, if you believe Bitcoin will drop back to $30,000, you could sell at $33,000, aiming to buy back cheaper at $30,000, making a profit from the price difference.
Market Sentiment:These gaps can also reflect significant changes in market sentiment or big news over the weekend that wasn't priced in earlier.
đđ đźđșđœđčđČ đ¶đ» đŠđ¶đșđœđčđČ đ§đČđżđșđ:
Think of it like a game of catch-up. If you and your friend are playing a game where you have to match numbers, but you can only play on weekdays, and over the weekend, your friend moves the number from 30 to 33 without you, when you come back on Monday, you'd start at 33. But, because you both usually like to match numbers, there's a good chance you'll go back to 30 before moving forward again. That's your CME gap â a space in the game where the numbers didn't match up due to a break in play.
In Bitcoin's world, these gaps are like little mysteries or opportunities for traders, watching and waiting for #Bitcoin to catch up or move on, providing insights into where the price might go next based on past behavior and market dynamics.
#CMEBitcoinSpotTrading #CMEFILLING #CMEGap #CMEGaps #CME
ââRepost will be appreciated ââ
âđšđ»đ±đČđżđđđźđ»đ±đ¶đ»đŽ đđ”đČ đđ đ đđźđœ đ¶đ» đđ¶đđ°đŒđ¶đ» đ§đżđźđ±đ¶đ»đŽ
Imagine you're watching your favorite show, and it goes off the air for a weekend, but when it comes back, the episode starts with a completely different scene than where it left off. That's kind of what happens with Bitcoin's price on the Chicago Mercantile Exchange (CME) when it creates what's known as a "CME gap."
âđȘđ”đźđ đ¶đ đź đđ đ đđźđœ?
A CME gap in Bitcoin's chart occurs because while Bitcoin trades 24/7 on most platforms, the CME, where Bitcoin futures are traded, has specific trading hours and is closed on weekends. Here's how it works:
Friday Close: Let's say Bitcoin's price on CME closes at $30,000 on a Friday.
Weekend Movement: Over the weekend, Bitcoin might jump to $33,000 due to news or market sentiment, but this isn't reflected on the CME because it's closed.
Monday Open: When CME opens on Monday, Bitcoin doesn't start trading at $30,000 where it left off. Instead, it begins at $33,000, creating a gap on the price chart between $30,000 and $33,000.
âđȘđ”đ đđŒ đ§đ”đČđđČ đđźđœđ đ đźđđđČđż?
Price Reversion: Often, traders watch these gaps because there's a tendency for Bitcoin's price to move back to fill this gap, meaning it might drop back to $30,000 or close to it before continuing its trend. This happens because traders might see the gap as an overreaction or an opportunity.
Trading Strategy: If you're trading, you might bet on Bitcoin moving back to fill this gap. For instance, if you believe Bitcoin will drop back to $30,000, you could sell at $33,000, aiming to buy back cheaper at $30,000, making a profit from the price difference.
Market Sentiment:These gaps can also reflect significant changes in market sentiment or big news over the weekend that wasn't priced in earlier.
đđ đźđșđœđčđČ đ¶đ» đŠđ¶đșđœđčđČ đ§đČđżđșđ:
Think of it like a game of catch-up. If you and your friend are playing a game where you have to match numbers, but you can only play on weekdays, and over the weekend, your friend moves the number from 30 to 33 without you, when you come back on Monday, you'd start at 33. But, because you both usually like to match numbers, there's a good chance you'll go back to 30 before moving forward again. That's your CME gap â a space in the game where the numbers didn't match up due to a break in play.
In Bitcoin's world, these gaps are like little mysteries or opportunities for traders, watching and waiting for #Bitcoin to catch up or move on, providing insights into where the price might go next based on past behavior and market dynamics.
#CMEBitcoinSpotTrading #CMEFILLING #CMEGap #CMEGaps #CME
đ #Bitcoin CME GAP Chart Analysis
đ Current $BTC Price:Â $31,120 ( CME Price )
đ Continuous green candles since June 15th
đ Two unfilled CME gaps to watch:
1ïžâŁ First GAP: $35,180
Originated on May 9th, 2022
Price nearing this level
Potential for upcoming gap fill
2ïžâŁ Second GAP: $20,330
Represents 35% drop from current level
Unfilled, important to monitor
đ While gap fillings aren't guaranteed, these levels hold significance. $35,180 gap may fill before $20,330.
đ° Placed Buy Bid:Â $30,330
Specific price for potential entry
đ Stay informed for trading decisions. Not all gaps fill, but monitoring provides insights.
#CME #BTC #BTCupdate #crypto2023
$XRP $PEPE
đ Current $BTC Price:Â $31,120 ( CME Price )
đ Continuous green candles since June 15th
đ Two unfilled CME gaps to watch:
1ïžâŁ First GAP: $35,180
Originated on May 9th, 2022
Price nearing this level
Potential for upcoming gap fill
2ïžâŁ Second GAP: $20,330
Represents 35% drop from current level
Unfilled, important to monitor
đ While gap fillings aren't guaranteed, these levels hold significance. $35,180 gap may fill before $20,330.
đ° Placed Buy Bid:Â $30,330
Specific price for potential entry
đ Stay informed for trading decisions. Not all gaps fill, but monitoring provides insights.
#CME #BTC #BTCupdate #crypto2023
$XRP $PEPE
XRP Price Soars Amid Strong Market Performance
The native token of the XRP Ledger, XRP, has seen a surge in bullish sentiments as its price climbed over 38% in just one week to surpass $0.6. This rally has elevated XRP to become the seventh-largest cryptocurrency by market capitalization.
XRPâs recent performance has outpaced that of Bitcoin, Ethereum, and other major cryptocurrencies, attributed by analysts to increased trading activity and other favorable market conditions.
Analyst Predicts Start of XRP Price Rally
Popular cryptocurrency analyst Milkybull Crypto, with over 70,000 followers on the microblogging platform X (formerly Twitter), recently suggested that the XRP price rally is just beginning. He likened this rally to the monumental surge seen in 2017.
Source:Â X
During that time, the price of XRP, the native token of the XRP Ledger, skyrocketed by over 66,000%, climbing from approximately $0.005 to over $3.3 before experiencing a subsequent decline.
Analystsâ Bullish Predictions for XRP
Crypto analyst MichaelXBT highlighted on the microblogging platform X the formation of a rare seven-year bullish pennant pattern for XRP. This prolonged consolidation phase suggests to him the potential for a substantial price increase.
Meanwhile, analyst The Great Matsby made an even more optimistic forecast based on the Bollinger Band squeeze technical pattern. Noting that XRP is currently experiencing one of its tightest monthly Bollinger Band squeezes in history, he pointed out that such conditions have historically preceded significant price movements.
The Greatatsbyâs analysis suggests that if this pattern plays out, XRP could potentially surge to $250, resulting in a market capitalization of $14 trillion.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
#XRP #Ripple #SEC #CME #WarzirX $XRP $WRX $BTC
XRPâs recent performance has outpaced that of Bitcoin, Ethereum, and other major cryptocurrencies, attributed by analysts to increased trading activity and other favorable market conditions.
Analyst Predicts Start of XRP Price Rally
Popular cryptocurrency analyst Milkybull Crypto, with over 70,000 followers on the microblogging platform X (formerly Twitter), recently suggested that the XRP price rally is just beginning. He likened this rally to the monumental surge seen in 2017.
Source:Â X
During that time, the price of XRP, the native token of the XRP Ledger, skyrocketed by over 66,000%, climbing from approximately $0.005 to over $3.3 before experiencing a subsequent decline.
Analystsâ Bullish Predictions for XRP
Crypto analyst MichaelXBT highlighted on the microblogging platform X the formation of a rare seven-year bullish pennant pattern for XRP. This prolonged consolidation phase suggests to him the potential for a substantial price increase.
Meanwhile, analyst The Great Matsby made an even more optimistic forecast based on the Bollinger Band squeeze technical pattern. Noting that XRP is currently experiencing one of its tightest monthly Bollinger Band squeezes in history, he pointed out that such conditions have historically preceded significant price movements.
The Greatatsbyâs analysis suggests that if this pattern plays out, XRP could potentially surge to $250, resulting in a market capitalization of $14 trillion.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
#XRP #Ripple #SEC #CME #WarzirX $XRP $WRX $BTC
The data from CME's "Fed Watch" reveals an 85.5% probability that the U.S. Federal Reserve will maintain interest rates within the 5.25%-5.50% range in January. Conversely, there's a 14.5% chance of a 25 basis point rate cut. This insight, reported by BlockBeats, highlights the Fed's inclination toward maintaining stability amidst economic growth and inflation concerns.
The Fed's likely decision carries substantial implications for financial markets, including cryptocurrencies. Interest rates hold sway over investor behavior in both risk-on and risk-off scenarios, influencing market dynamics. This careful balancing act by the Federal Reserve aims to navigate economic challenges, which could reverberate across various financial sectors, including cryptocurrencies.
#CME #2023withBinance #BinanceWish
The Fed's likely decision carries substantial implications for financial markets, including cryptocurrencies. Interest rates hold sway over investor behavior in both risk-on and risk-off scenarios, influencing market dynamics. This careful balancing act by the Federal Reserve aims to navigate economic challenges, which could reverberate across various financial sectors, including cryptocurrencies.
#CME #2023withBinance #BinanceWish
đ Data from K33 Research and cited by cryptocurrency market insight platform Unfolded reveals that CME Bitcoin futures open interest (OI) has exceeded 100,000 BTC (approximately $3.4 billion at current prices) for the first time in history. Additionally, CME's Bitcoin futures market share has surged to 25%, closely following Binance (spot + futures) at 29%. đđ #CME #bitcoin #cryptoanalysis đȘđĄ
đą The #Bitcoin Smart Money Index hits a record high of 13,711, indicating net #bullish positioning by asset managers on the #CME
#Smartmoney #ATH
#Smartmoney #ATH
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Hereâs how Bitcoin and Ethereum traded in March, according to data from TheBlock Pro:
1. On March 29, the trading volume of Bitcoin options reached a historical peak of $46.75 billion, an increase of 18.5% from the previous time.
2. On the same day, the trading volume of Ethereum options also hit a record high of $20.99 billion, an increase of 23.6% from the previous time.
3. Although trading volume increased in March, open interest in Bitcoin options fell by 1.9%.
4. Ethereumâs open interest also showed a downward trend, with a decrease of 6.6%.
5. The average monthly trading volume of Ethereum futures surged to US$893.8 billion in March, an increase of 60.9%.
6. CME Groupâs Bitcoin futures open interest increased by 49.5% to a record high of $11.7 billion.
7. The average daily trading volume of CME Groupâs Bitcoin futures also increased by 114.8% to approximately US$6.8 billion, also hitting a record high.
#çéšèŻéą #BTC #ETHđ„đ„đ„ #CME $BTC $ETH
1. On March 29, the trading volume of Bitcoin options reached a historical peak of $46.75 billion, an increase of 18.5% from the previous time.
2. On the same day, the trading volume of Ethereum options also hit a record high of $20.99 billion, an increase of 23.6% from the previous time.
3. Although trading volume increased in March, open interest in Bitcoin options fell by 1.9%.
4. Ethereumâs open interest also showed a downward trend, with a decrease of 6.6%.
5. The average monthly trading volume of Ethereum futures surged to US$893.8 billion in March, an increase of 60.9%.
6. CME Groupâs Bitcoin futures open interest increased by 49.5% to a record high of $11.7 billion.
7. The average daily trading volume of CME Groupâs Bitcoin futures also increased by 114.8% to approximately US$6.8 billion, also hitting a record high.
#çéšèŻéą #BTC #ETHđ„đ„đ„ #CME $BTC $ETH
đ€ #CME $BTC futures have ended a week-long backwardation* period and are trading above the spot price again
*Backwardation is a situation where the futures price is cheaper than the price of the underlying asset. It is commonly believed that backwardation indicates negative market expectations. Accordingly, in our case we can speak about the transition to optimism.
*Backwardation is a situation where the futures price is cheaper than the price of the underlying asset. It is commonly believed that backwardation indicates negative market expectations. Accordingly, in our case we can speak about the transition to optimism.
Crypto prices continue to hold upđ
On the crypto side, prices continue to hold up with CME announcing that they are going to be launching an ETH/BTC ratio futures spread trade by July 31st, an interesting production expansion following the recent waves of spot ETF filing. Spread trades tend to be popular instruments for institutional holders more than retail, so this is another positive step towards institutional adoption preparation that is a long-term positive for the industry. Furthermore, similar to the move in equities, the recent rally in BTC has been largely concentrated on US hours, breaking a string of out Asia-timezone outperformance for much of this year.
#CME
On the crypto side, prices continue to hold up with CME announcing that they are going to be launching an ETH/BTC ratio futures spread trade by July 31st, an interesting production expansion following the recent waves of spot ETF filing. Spread trades tend to be popular instruments for institutional holders more than retail, so this is another positive step towards institutional adoption preparation that is a long-term positive for the industry. Furthermore, similar to the move in equities, the recent rally in BTC has been largely concentrated on US hours, breaking a string of out Asia-timezone outperformance for much of this year.
#CME
#CME Group, the world's largest futures exchange, is considering launching #Bitcoin spot trading to meet the growing interest from Wall Street fund managers in the cryptocurrency market. This move is a response to the increasing demand for regulated Bitcoin trading options among institutional investors.
CME Group has been engaging in discussions with traders interested in buying and selling Bitcoin in a regulated environment. Although the plan is not yet finalized, its implementation would mark a significant step in integrating major #Wallstreet institutions into the digital asset space.
#CMEBitcoinSpotTrading #TrendingTopic
CME Group has been engaging in discussions with traders interested in buying and selling Bitcoin in a regulated environment. Although the plan is not yet finalized, its implementation would mark a significant step in integrating major #Wallstreet institutions into the digital asset space.
#CMEBitcoinSpotTrading #TrendingTopic
đđđ Crypto Derivatives Gain Institutional Traction as #Wintermute Asia Executes First Options Block Trade on #CME Group đđđ
Wintermute Asia, the derivatives trading arm of the algorithmic trading firm Wintermute Group, executed its first options block trade through CME Group on November 21, 2023. The BTC/USD block was traded between Wintermute Asia and TP ICAP and was cleared by ABN AMRO Clearing Bank.
This marks a significant milestone for Wintermute Asia as it expands its presence into the traditional derivatives market. The company is now able to offer its clients a wider range of products and services, including options trading on Bitcoin and other #cryptocurrencies.
The trade was also a significant development for CME Group, which is the world's second-largest futures exchange. CME Group has been actively expanding its presence in the crypto derivatives market in recent years, and the execution of this block trade is a testament to its growing capabilities in this space.
Overall, the execution of Wintermute Asia's first options block trade through CME Group is a positive development for both companies and for the broader crypto derivatives market. It is a sign of growing institutional interest in cryptocurrencies and the increasing availability of professional trading products and services in this space.
#CryptoNews #BinanceSquare
Wintermute Asia, the derivatives trading arm of the algorithmic trading firm Wintermute Group, executed its first options block trade through CME Group on November 21, 2023. The BTC/USD block was traded between Wintermute Asia and TP ICAP and was cleared by ABN AMRO Clearing Bank.
This marks a significant milestone for Wintermute Asia as it expands its presence into the traditional derivatives market. The company is now able to offer its clients a wider range of products and services, including options trading on Bitcoin and other #cryptocurrencies.
The trade was also a significant development for CME Group, which is the world's second-largest futures exchange. CME Group has been actively expanding its presence in the crypto derivatives market in recent years, and the execution of this block trade is a testament to its growing capabilities in this space.
Overall, the execution of Wintermute Asia's first options block trade through CME Group is a positive development for both companies and for the broader crypto derivatives market. It is a sign of growing institutional interest in cryptocurrencies and the increasing availability of professional trading products and services in this space.
#CryptoNews #BinanceSquare