The CME Bitcoin futures market opened on December 28 with the largest gap on record. After opening nearly 12% above Thursday’s close, trading of Bitcoin futures on the Chicago exchange was temporarily halted amid heightened volatility.
Is it a bird, is it a plane? No, it’s Bitcoin futures CME halting because of biggest gap ever. pic.twitter.com/SUgzowKsTE
— zender 🟨⬛ Taproot by BIP8 (@zndtoshi) December 27, 2020
Is it a bird, is it a plane? No, it’s the CME Bitcoin futures trading halted due to the largest gap in history.
On the spot market, Bitcoin trading continues around the clock, seven days a week, but CME futures markets are closed on weekends. Price moves over the weekend create gaps on the CME market at Monday’s open.
On Sunday, December 27, the price of the leading cryptocurrency reached a record high of $27,500.
Data: TradingView.
After Bitcoin rose to $28,330 (per CoinGecko), the leading cryptocurrency retraced to around $26,940 at the time of writing. Despite the pullback, Bitcoin trades about 14.7% above the level seen a week earlier.
Gaps are widely watched by traders. Price gaps between futures and spot markets often lead to arbitrage trading and tend to fill in the next trading sessions.
For more on the nuances of technical analysis and working with gaps, read the ForkLog special project.
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