CME futures monthly closing for the month of January is due today. At press time, the monthly futures has gained 33% with price the monthly futures price topping at $9745.
The volatility can expect to bring changes at the closing today. Nevertheless, looks like the volume of February contracts have already taken over. The volume of January contracts has fallen bellow 100 on the exchange.
While the strong positive closing rekindles bullish spirits, there are two bearish gaps looming on the daily charts.
Gap 1 at $8540, which occurred during the first weekend on a bullish break-out.
Gap 2 at $8935, which occurred during daily closing hours on CME. Nevertheless, the high of the day was fairly
Both gaps were recorded by the price action within one week. Independent market researcher, alias, TheWhiskeyGuy recently posted statistics on how Gaps have worked in the past. According to his findings reported by Joel,
-95% of gaps close
-82% within the same week
-53% on the first day
But he also added, “Odds are always in favor of a close, but drawdowns if you only play the gap close can be painful and costly.”
Closing of other Long-Term Contracts
Furthermore, the monthly closing on Bitcoin is now expected above the closing and opening of Oct-Nov last year. The formation of higher high is a positive signal for the bulls.
The quarterly and bi-annual contracts offered by CME on BTC are projecting a bullish trend as well. According to expert derivatives and crypto trader, Josh Olszewicz,
$BTC CME rollover on the oct-jan contract 2mrw
– currently around BE (Book Entry) from open dec-jun bi-annual contract currently +30% from open
He also added,
2) the bi-annual contracts have been binary so far – up or down
3) current contract is a strong up thus far, suggesting continued up until expiration on june 26th
The six month trend in CME contracts have so far been uni-directional. Accordingly, Bitcoin has pushed above November highs with profitable closings for contracts bought later.
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