Bitcoin’s Dip to $50.9k Closes Two CME BTC Gaps

Theory Behind CME Bitcoin Gaps. With respect to the significance of CME Bitcoin gaps, BTC traders have for a while, postulated a loose theory that every gap created on the CME BTC/USD chart, will be filled with time.

Gaps are created when the price of Bitcoin experiences a wild swing during the weekend, thus greatly deviating from the Friday close at the CME exchange and leaving a gap on the chart as seen above.

According to the aforementioned theory by BTC traders, Bitcoin’s price will eventually return to the price level of gap and fill it.

  • In the last 24 hrs, Bitcoin suffered a crash from $60,900 to $50,900
  • Over 1 million traders were liquidated to the tune of $10.2 Billion
  • The dip successfully closed 2 CME BTC Gaps
  • The closure of the two gaps created another at $62,100 that could also be filled in the future

The last 24 hours have been a tumultuous period in the crypto markets as Bitcoin dropped by roughly $10k from $60,900 to a local low of $50,900. The 16.4% Bitcoin dump in the stated time period caused the liquidation of 1.073 million traders who lost a total of $10.2 Billion as highlighted by the team at Bloqport through the following tweet.

The largest Liquidation was a Bitcoin Order Valued at $68.73 Million

$10.2 Billion in liquidations during a 24 hour time period, is possibly the highest witnessed to date.

Double-checking the liquidation data on Bybt.com reveals that $5.33 Billion lost was through Bitcoin trading positions. Furthermore, the highest loss was a BTC trade worth $68.73 million. Ethereum traders lost roughly $1.16 Billion in trading positions with XRP traders losing $499.23 million as highlighted in the following screenshot courtesy of the tracking website.

$9.26 Billion in Longs Liquidated

Further breaking down the $10.2 Billion in liquidations, $9.26 Billion worth of trading positions liquidated were long positions. Short sellers were liquidated to the tune of $887 Million according to Bybt.com.

Dip to $50,900 Closed two CME Gaps, Creating a Third at $62,100

One potential benefit of the rapid dip to $50,900 is that it closed two CME Bitcoin gaps. The first gap was between $59k and $60k with the second one located between $55,100 and $54,440 as highlighted in the following chart.

The dip also created a third CME Bitcoin gap back at Friday’s close of $62,115. This in turn foreshadows the possibility of Bitcoin revisiting this price area sometime in the future to fill it. Therefore, Bitcoin could still have some fuel left in the tank to revisit levels above $60k despite the weekly chart hinting of exhaustion.

Spread the love
FacebookTwitterLinkedinRedditMixWhatsappWordPressTelegramVkontakte
Share
Tags: Bitcoin (BTC) General News Bitcoin (BTC) Predictions bitcoin btc news Bitcoin Price

Recent Posts

Ethereum’s One Month Correlation with BTC Drops to 68% as $3k Beckons
  • Ethereum News 2

Ethereum’s One Month Correlation with BTC Drops to 68% as $3k Beckons

$3k Possible for Ethereum in the Month of May. Ethereum’s ongoing…

Ethereum 2.0 Deposit Contract Now Holds 4M ETH Worth $10.8B
  • Ethereum News 2

Ethereum 2.0 Deposit Contract Now Holds 4M ETH Worth $10.8B

Ethereum Aims for new ATHs as Options and Futures Expire…

Tesla sold 10 percent of its bitcoins. Cause of concern for cryptocurrency investors?
  • News coin 2

Tesla sold 10 percent of its bitcoins. Cause of concern for cryptocurrency investors?

Tesla released its first quarter 2021 earnings earlier this week.…

Gemini Exchange to Issue Its Own Credit Card for Cryptocurrency Cashbacks
  • News coin 2

Gemini Exchange to Issue Its Own Credit Card for Cryptocurrency Cashbacks

Users of the large cryptocurrency exchange Gemini will soon get…

Iranian government will use mined cryptocurrency to fight economic sanctions
  • News coin 2

Iranian government will use mined cryptocurrency to fight economic sanctions

Iran continues to explore the potential use of cryptocurrencies as…

Ethereum’s Recent High Fees Pushed More USDT to Tron
  • Ethereum 2019 News

Ethereum’s Recent High Fees Pushed More USDT to Tron

Tether’s Market Cap Hits $50 Billion. Mr. Ardoino’s comments were in…