CME Futures Gap

Definition ∞ A CME Futures Gap refers to a discontinuity on a price chart for Bitcoin futures contracts traded on the Chicago Mercantile Exchange. This gap occurs when the market closes at one price level on Friday and reopens on Sunday at a significantly different price, leaving an empty space on the chart. These price differences are typically attributed to market movements over the weekend when traditional futures markets are closed. Traders often view these gaps as potential price targets that the market may eventually fill.
Context ∞ The CME Futures Gap is a frequent topic in cryptocurrency technical analysis and news, as many traders consider these gaps to possess predictive qualities for Bitcoin’s future price action. While not a guaranteed outcome, the tendency for prices to revisit and “fill” these gaps influences short-term trading strategies. Market participants closely watch for these formations as indicators of potential price reversals or continuation patterns.