WHAT IS CME GAP-FILL THEORY?
Are you a cryptocurrency trader? If so, you may have heard of the "CME gap." This gap refers to a difference in price on the Chicago Mercantile Exchange (CME) Bitcoin futures chart. While regular cryptocurrency exchanges operate around the clock, CME Group has specific trading hours during weekends and holidays. CME Group offers Bitcoin futures contracts, which enable traders to speculate on the future price movements of Bitcoin. When the CME Bitcoin futures market closes, a gap may occur between the last traded price on CME and other exchanges. This gap creates an opportunity for traders to profit when the CME market reopens, as the price may move to fill the gap. Despite the debate among traders and analysts regarding the significance of CME gaps in relation to the price of Bitcoin, it's important to note that gaps have been observed to be filled in the past. This phenomenon is sometimes called the "CME gap-fill theory." According to this theory, if the Bitc...