When CME futures opened on Monday, BTC jumped $960 ($104,160→$105,120)—this is the so-called "gap" phenomenon.
**Why does this happen?** The Chicago Mercantile Exchange is closed on weekends, but the crypto market trades 24/7. Between the Friday close and Monday open, the spot market does its own thing, so when CME opens, it has to catch up with the price.
**How is this useful for trading?** Historical data shows that most gaps eventually get filled, but sometimes they widen. The key points are— - Large gaps often indicate a strong trend - The size of the gap affects how quickly it gets filled - Confirmation across multiple timeframes is needed; don’t just blindly follow
Currently, the $960 gap is still in a decision phase, with clear signs of institutional activity. Traders who understand this logic can avoid a lot of pitfalls.
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Bitcoin caused another stir over the weekend 😅
When CME futures opened on Monday, BTC jumped $960 ($104,160→$105,120)—this is the so-called "gap" phenomenon.
**Why does this happen?** The Chicago Mercantile Exchange is closed on weekends, but the crypto market trades 24/7. Between the Friday close and Monday open, the spot market does its own thing, so when CME opens, it has to catch up with the price.
**How is this useful for trading?** Historical data shows that most gaps eventually get filled, but sometimes they widen. The key points are—
- Large gaps often indicate a strong trend
- The size of the gap affects how quickly it gets filled
- Confirmation across multiple timeframes is needed; don’t just blindly follow
Currently, the $960 gap is still in a decision phase, with clear signs of institutional activity. Traders who understand this logic can avoid a lot of pitfalls.