Have you heard the term "CME Gap" and wondered what all the fuss is about? Let's break it down.

The CME (Chicago Mercantile Exchange) is where Bitcoin futures are traded during regular business hours: Monday to Friday, from 5:00 PM to 4:00 PM Central Time. Unlike cryptocurrency markets, which operate non-stop, the CME closes on weekends. This is where the gaps come into play.

When Bitcoin experiences a significant movement over the weekend, the next time the CME opens, there is usually a price difference between the closing price on Friday and the cryptocurrency market price on Sunday night. This untraded space on the chart is called the CME Gap.

Why it is important:

Historically, Bitcoin tends to "fill" these gaps, meaning that the price often revisits the gap area sooner or later. Although it is not a guaranteed signal, many traders use it to anticipate short-term reversals or continuation moves.

For example: If Bitcoin closes on Friday at $63,000 on the CME and rises to $65,000 on Sunday, a $2,000 gap upwards is formed. The price could retrace to $63,000 to "fill" it.

Keep an eye on those gaps: they are not magical, but often act as magnets for the price.