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The Curious World of CME Gaps in Crypto Trading
CME Gaps. Pretty fascinating stuff in the crypto world. These gaps show up when Bitcoin does its weekend dance while the Chicago Mercantile Exchange sleeps. See, CME only runs Monday through Friday, 5 PM to 4 PM CT. Crypto? Never sleeps.
Weekend price jumps create these weird empty spaces on CME charts. Friday closes at one price. Monday opens at another. That empty middle? That's your gap.
Traders obsess over these things. Why? They tend to fill. Not always. But often enough to notice. Historical patterns suggest Bitcoin frequently circles back to these uncharted zones. Kind of surprising how consistent this pattern can be.
I've seen it happen. Bitcoin closes Friday at $87,000 on CME. Then shoots up to $90,000 by Sunday across crypto exchanges. Boom – $3,000 gap forms Monday morning. The gap-filling theory suggests prices might eventually drift back down to $87,000.
Trading these gaps isn't an exact science. Some folks watch weekend movements like hawks. Others blend gap analysis with technical indicators. Many see unfilled gaps as price magnets. It's not entirely clear why this happens, but it seems to be partly psychological.
Are they perfect predictors? Nope. But these strange little chart phenomena definitely shape how people trade. And in markets driven by human behavior, that matters.