Why CME Gaps Are Important in Bitcoin Trading

metaverse_hermit · 2026-01-13T10:06:55+00:00

CME gaps refer to price movements between the weekend market close and Monday open, reflecting market participants' sentiment. The direction of the gap indicates bullish or bearish sentiment, allowing traders to gauge market direction and make strategic trading decisions.

metaverse_hermit

2026-01-13 10:06:55

Abstract generation in progress

Due to the time gap between market closing on the weekend and opening on Monday, a price gap occurs in Bitcoin, which is called the CME gap. This gap is not just a simple price movement but an indicator that intuitively reflects the psychological state of market participants.

Understanding the Meaning of the CME Gap

A gap that opens upward indicates that accumulated buying demand over the weekend is revealed at Monday’s open. Conversely, a gap that opens downward suggests that selling sentiment is prevailing. These price gaps help traders grasp the overall market direction.

Practical Tips for Traders

Monitoring the CME gap is not just about following past patterns but involves predicting future market volatility and momentum. Through accurate gap analysis, traders can set more precise entry points and exit timings, leading to minimized losses and maximized profits.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.