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An important Chicago Mercantile Exchange (CME) Bitcoin (BTC) futures gap closed as BTC/USD suddenly dropped below $54,000 on Feb. No rewrites were found A CME gap forms when the price of Bitcoin moves either up or down after the CME closes during the weekend or holidays .
A CME gap forms when the price of Bitcoin moves either up or down after the CME closes during the weekend or holidays in the U.S.
Unlike most cryptocurrency exchanges, since the CME Bitcoin futures exchange is not open at all times, a gap forms between CME and many Bitcoin trading platforms.
The prices of Bitcoin tend to sharply correct in a short period after a new weekly candle opens.
A weekly candle open helps flush out the overleveraged longs and levels off the volatility of Bitcoin futures. Previously, the funding rate of the Bitcoin futures market ranged between 0.15% and 0.25%.
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As such, a gap at $55,504 emerged, which closed as the price of Bitcoin fell steeply after the new weekly candle opened.
#Bitcoin CME gap closed finally. https://t.co/JygwzJwClk pic.twitter.com/XYkPgKuBjp
— Fomocap trades (@Workedia) February 22, 2021
There is always the chance that we could fall, but each move like this has provided a buying opportunity over the past few years." This sentence applies to .
CME Bitcoin futures gap on Feb. 22 saw a sudden drop below $54,000 as Bitcoin/USD suddenly dropped below that critical level. A CME gap occurs when the price of Bitcoin fluctuates during weekends and bank holidays in the U.S., when the CME is closed. As many cryptocurrency exchanges fail to be open at all times, gaps tend to form.BTC/USDT 4-hour chart (Binance).
Bitcoin was trading at more than $58,000 for two days on major cryptocurrency exchanges when the CME gap opened, which closed as Bitcoin fell sharply after the new weekly candle opened.
#Bitcoin gap closed finally at the CME.
Large deposits spotted on Gemini
Prior to the pullback, CryptoQuant found that large BTC deposits were transferred to Gemini, one of the leading U.S. cryptocurrency exchanges.
Before the dip, there were significant $BTC inflows into all exchanges, mostly Gemini.
Chart https://t.co/6gPk3Qbg6j pic.twitter.com/j1wDNtqNak
— CryptoQuant.com (@cryptoquant_com) February 22, 2021
As a cryptocurrency trader, Scott Melker said, dips don't last long in recent history. According to his e-mail, "I don't know what happens here, but recent history shows that dips usually do not last long."
Could use another slow float after this latest bit of selling.
The market could also fall, but a decline like this in the past has provided buying opportunities." Data shows that over $1 billion worth of futures contracts were liquidated in the last 24 hours.
After the drop, traders are anticipating a gradual recovery. Scott Melker, a cryptocurrency trader and technical analyst, said that recent history indicates dips do not last long. He wrote:
"I have no idea what happens here, but recent history shows that dips have not lasted long. Would love to see another slow float back up after this bit of selling. Of course we could drop, but each move like this of late has been a buying opportunity."
