Another Gap on CME Bitcoin Futures, Bullish or Bearish for BTC Price?
- Bitcoin futures volume surged significantly during the weekend
- Last week, CME Bitcoin futures open interest reached a record for a fourth consecutive day
Bitcoin futures are gaining a lot of steam and attraction as they register record volume and open interest.
“Just bitcoin. On a weekend. Only futures. During low tf consolidation. Wild,” commented trader Ledger Status.
Meanwhile, on CME, a global markets company that owns large derivatives, futures, options, and exchanges registered a record 643 Bitcoin futures contracts in a single day last week. The exchange established a new all-time high of 5,311 contracts on June 17 amounting to $250 million in notional open interest.
“CME Bitcoin futures (BTC) shows growing signs of institutional interest,” the global futures platform wrote on Twitter.
However, this hasn’t been a one time thing rather a continuous one. On June 20, CME again reported of Bitcoin futures open interest reaching a record for the fourth consecutive day. That day, with 5,827 contracts traded that was equivalent of 29,135 BTC recorded $280 million in notional open interest that has been an increase of 25 percent from last Friday.
Now, that CME platform doesn’t open on weekends, we have another gap on the charts. During 2019, the Bitcoin CME weekly gaps have been greater than 3 percent. However, on a number of weekends that is 40 percent, there has been a gap greater than 3 percent, shared economist and crypto trader Alex Kruger.
These weekend gaps have been bullish for the most part as the “Sunday open stop-run has resulted in an average move on the open of 2.4%.”
With CME Bitcoin futures to kick off again today and as crypto trader and investor Josh rager says Bitcoin is slowly making its way up from the formation. This will have the price hold above the trendline and continue to move up to bring in more gains.
$BTC CME Futures
Another Gap… and tbh, I'm bullish especially if price closes above weekly resistance this week pic.twitter.com/rfvjyIXByq
— Josh Rager 📈 (@Josh_Rager) June 23, 2019
While Rager is bullish, crypto analyst The Cryptomist sees a dip coming in the light of this gap. The gap, she shares present low as $8.4k. However, at this point, any dip is eagerly anticipated by many as given the way Bitcoin has surged to $10,000, a buy the dip opportunity is most welcome.
“Dips are healthy loveys, so do not panic,” said the Cryptomist.
It would be interesting to see the direction Bitcoin would be moving in as an uptrend could see us going for a new 2019 high while a downtrend will provide us the opportunity to fill up the bags some more before we never get to see $10,000 in this cycle again.