Bitcoin to crash at US market open? Price spike makes two new CME gaps and closing one carries a punishing cost - CryptoSlate
Bitcoin's recent price movements have created significant market speculation as two new gaps have formed in the Chicago Mercantile Exchange (CME) futures market. Following a notable price spike, Bitcoin's value has raised concerns regarding potential volatility, especially as the U.S. market prepares to open.
The CME gaps occur when the futures market closes at a certain price, and then reopens at a different price, leaving a "gap" on the chart. These gaps are often seen as potential areas for price correction or retracement. The latest surge in Bitcoin's price has resulted in the formation of two new gaps, which traders are keenly monitoring.
Historically, Bitcoin has demonstrated a tendency to fill these gaps, leading to speculation that a market correction could be imminent. With the U.S. market open approaching, many investors are weighing the risk of a price downturn, as closing one of these gaps could come with substantial consequences.
Market analysts suggest that the current spike may not be sustainable, and they warn that failure to address these gaps could lead to increased volatility. The potential for a crash coinciding with the U.S. market open adds another layer of uncertainty for traders, as they navigate the implications of these price movements.
As Bitcoin continues to attract attention from both institutional and retail investors, the market landscape remains unpredictable. Analysts emphasize maintaining caution, particularly in light of the recent price action and the historical significance of CME gaps.
In summary, the cryptocurrency market is on high alert as Bitcoin's recent price dynamics raise questions about the stability of its rally and the potential for sharp corrections.
Key Takeaways
- Two new CME gaps have formed in Bitcoin's price chart following a recent spike.
- Historical trends suggest that Bitcoin may fill these gaps, raising concerns about potential market corrections.
- The U.S. market open could trigger increased volatility, leading to speculation of a price crash.
- Analysts advise caution as the market reacts to these developments.
This article was inspired by reporting from Google News Crypto. · Report an issue