Bitcoin is now back trading above $115,000, but the recovery comes with a shadow that cannot be ignored. A new gap has opened on the CME Bitcoin futures chart, and while the spot market has pushed higher since then, the presence of this gap opens up a bearish scenario.
These gaps have a history of pulling Bitcoin back down to fill them, and the most recent one raises questions about how long the current bullish momentum can last.
### Bitcoin Opens Up Huge CME Gap
Crypto analyst Daan Crypto noted on the social media platform X how Bitcoin opened the week with a huge CME gap, which has continued higher since the futures open. This gap is significant, as it has been a while since Bitcoin opened with such a large gap.
As shown in the chart below, this CME gap lies between $110,000 and $111,300. Gaps on CME futures tend to close fairly quickly, meaning that Bitcoin often retraces to the level of the gap before resuming its trend.
If that happens this time, the short-term structure of Bitcoin’s price action could deteriorate into bearish momentum.
However, Daan also emphasized that this gap should not be considered “in play” unless Bitcoin drops below $111,000. If that occurs, the futures chart could drag spot prices lower, turning recent strength into weakness.
### What Does This Mean For Bitcoin?
A CME gap occurs because the Chicago Mercantile Exchange does not trade over the weekend, unlike the spot Bitcoin market, which operates 24/7. When Bitcoin makes a big move on Saturday or Sunday, CME futures reopen on Sunday evening at a different level than they closed on Friday, leaving an empty gap on the price chart.
It’s common knowledge that Bitcoin tends to fill these gaps by returning to the level of the gap before continuing its trend. If Bitcoin retraces to close this latest gap between the $110,000 to $111,000 range, it would erase the recovery that pushed it to $115,000 and bring the price back into a zone of uncertainty.
According to Daan Crypto, if that happens, the entire short-term structure would look quite negative. However, this might be one of those rare gaps that never closes—or not until months later.
This would likely be the case unless Bitcoin breaks below $111,000. A dip below that level could ultimately cause Bitcoin to lose the $110,000 price point again.
On the other hand, if Bitcoin can sustain trading above $115,000 with enough buying pressure, the gap can be ignored in the short term. The next test will be whether buyers can maintain this momentum and push the price toward $120,000.
### Current Market Status
At the time of writing, Bitcoin is trading at $116,380, up by 1.4% in the past 24 hours.
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*Featured image from Pixabay, chart from Tradingview.com*
https://www.newsbtc.com/news/bitcoin/bitcoin-disturbing-cme-gap/
