Since futures trading began in December of 2017, no gap has gone unfilled in the futures trading market. To me, this could mean one main thing - Institutional traders are in fact here, and they are winning big. They are hedging their spot positions in BTC with options to guarantee profitability. Whether or not my interpretation of this theory is true, the fact remains that price has gravitated back toward any liquidity gaps that have appeared in the BTC futures trading. The maximum amount of time for this phenomenon to play out has been 1 month.
It is Sunday and Bitcoin is dropping. If it closes Sunday below $3500, a significant gap will have appeared. A trade strategy here could be going long below $3500 and waiting for the gap to be filled at a later date.
It is Sunday and Bitcoin is dropping. If it closes Sunday below $3500, a significant gap will have appeared. A trade strategy here could be going long below $3500 and waiting for the gap to be filled at a later date.