Bitcoin Price Reclaims $8K After Filling Final Lower CME Futures Gap
Bitcoin posts 3.5% daily gains as optimism starts trickling back into cryptocurrency markets and a crucial CME gap gets filled.
Bitcoin (BTC) rose above $8,000 on March 10 as markets worldwide began a seemingly miraculous recovery from Monday’s crash.
Cryptocurrency market daily overview. Source: Coin360
BTC price follows stocks revival
At press time, the pair traded at around $8,070, up 3.5% on the day while still 9% down versus the same time a week ago.
Bitcoin 1-day price chart. Source: Coin360
The boost for Bitcoin came hours after traditional markets appeared to shake off the panic which characterized the first trading day of the week. United States stocks, for example, all but canceled out Monday’s slump.
Cointelegraph Markets analyst Mati Greenspan summarized:
“The US Stock market has already recouped almost all of yesterday's historic losses.... Capitulation??”
CME gap: Next stop $11.8K?
Bitcoin’s trip to the $7,600 range meanwhile became significant for another reason. As various traders noted on Monday, $7,685 represented the final “gap” in CME Group’s Bitcoin futures markets.
The vacuum between the end of one futures trading session and the start of another, gaps left behind have a tendency to get “filled” by Bitcoin at a later date.
BTC/USD thus exactly filled the last gap remaining which was lower than the previous spot price. The only other gap is much higher — $11,790.
“There are now NO MORE GAPS below $BTC,” popular Twitter account The Moon commented on the events.
“So, we can finally get this bull run started as a safe haven asset!”
Others were more cautious. Fellow Cointelegraph Markets analyst filbfilb said that while he had added to his position, he envisaged exiting once again at around $8,200.
“Position is obviously cautious until otherwise, but I have bought back in this morning with around 30% of capital allocated,” he told subscribers of his Telegram trading channel on Tuesday.
“I'll add into strength as and when it comes as the overall picture and total environment is still not clear.”