When the price of Bitcoin or other assets "fill" the CME gap

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Sometimes before the weekend, or at the end of the weekend, Bitcoin causes volatility out of the blue. This is not out of the blue, but in fact, it is a phenomenon caused by price differences between exchanges.

"CME Gap" refers to the price difference that occurs between the price of Bitcoin futures and the actual price of Bitcoin on the Chicago Mercantile Exchange (CME). This gap is caused by changes in the actual price of Bitcoin while the CME is closed, such as weekends and holidays. For example, there can be a difference between the price when the CME closes on Friday and when it reopens on Monday. This difference is called a "gap."

When the price of Bitcoin or other assets "fill" the CME gap, it means that the market price moves back to the previously formed gap point to fill the gap. For example, if a price rises over the weekend to form a gap, it's when the market goes back down to the price just below that gap.

Market sentiment and technical analysis are the main reasons for this phenomenon. Many traders see this gap as an important price indicator, and expect the price to test the point again after the gap is formed. Thus, this sentiment can create a self-fulfilling prophecy, which can actually move prices to fill the gap.

In addition, some traders use the gap as part of their technical analysis to establish trading strategies. They believe that the market will try to fill the gap to include price information that has not been previously reflected, and they can use it as a trading opportunity.

In the end, the phenomenon that the price of bitcoin or other assets fills the CME gap can be seen as a complex result of the psychology and expectations of market participants and technical analysis methodology.