BTC - CME FUTURES GAPS: WHAT IS NEXT
Ok guys, on the main chart I have the September futures contract that is due to settle at end of business day TOMORROW.
With that said. What is really important noting is that futures trading has really really REALLY affected prices because imagine what prices do to to any sizable position you take on even just a 5x margin... Practically affects price immediately.
Now imagine trading a few hundred to a few thousand BTC on margin.
For those of you unfamiliar with futures gaps, the way the exchanges that offer them make money is by calling the liquidity that those sizable order create.
So, essentially what people with a ton of money can do tell the exchange that they bet a TON of money that the money they inject into the market will be so sizable that it will fundamentally move the market. THOSE are the gaps.
Whenever you see the market move against that position and fully cover the gap in front of it is when their position is called and essentially the exchange makes off with most, if not all, their money. But if the market does NOT cover their position, they make off like bandits.
So whenever you read about "filling the futures gap", that's what it means. It means that the market has essentially moved against their position and their position was either liquidated or they made a call against them to where they had to close the position to avoid heavy loss. This is how futures markets make money.
As you can see, the only ones remaining in this contract period that have been unfilled are the ones circled in yellow... So ask yourself. Can the market move by a few thousand in literally one day?..
UNLIKELY. What IS likely is the one small tiny little gap left about $70 below our lowest recent low to be filled here and then I predict we go up.
So this bring up the question of where the gaps are in the NEXT contract that is due to expire at the end of next month? Surprise surprise, they're ALL above us! ALL of them.
Guess where I'm betting my money that we're going to revisit sooner than later?
ALSO..
If you ever want to look at future facing contracts as a whole (essentially all of the most recent gaps made), go into your TV ticker search bar and type in "BTC2!" And looking at the most recent ones. Guess where we have a whole ton of gaps?
So I'll ask you where you think price is headed sooner or later?
Once we fill the small gap below us, I predict we go higher.
With that said. What is really important noting is that futures trading has really really REALLY affected prices because imagine what prices do to to any sizable position you take on even just a 5x margin... Practically affects price immediately.
Now imagine trading a few hundred to a few thousand BTC on margin.
For those of you unfamiliar with futures gaps, the way the exchanges that offer them make money is by calling the liquidity that those sizable order create.
So, essentially what people with a ton of money can do tell the exchange that they bet a TON of money that the money they inject into the market will be so sizable that it will fundamentally move the market. THOSE are the gaps.
Whenever you see the market move against that position and fully cover the gap in front of it is when their position is called and essentially the exchange makes off with most, if not all, their money. But if the market does NOT cover their position, they make off like bandits.
So whenever you read about "filling the futures gap", that's what it means. It means that the market has essentially moved against their position and their position was either liquidated or they made a call against them to where they had to close the position to avoid heavy loss. This is how futures markets make money.
As you can see, the only ones remaining in this contract period that have been unfilled are the ones circled in yellow... So ask yourself. Can the market move by a few thousand in literally one day?..
UNLIKELY. What IS likely is the one small tiny little gap left about $70 below our lowest recent low to be filled here and then I predict we go up.
So this bring up the question of where the gaps are in the NEXT contract that is due to expire at the end of next month? Surprise surprise, they're ALL above us! ALL of them.
Guess where I'm betting my money that we're going to revisit sooner than later?
ALSO..
If you ever want to look at future facing contracts as a whole (essentially all of the most recent gaps made), go into your TV ticker search bar and type in "BTC2!" And looking at the most recent ones. Guess where we have a whole ton of gaps?
So I'll ask you where you think price is headed sooner or later?
Once we fill the small gap below us, I predict we go higher.
Comment:
Quick update to the gaps we could potentially hit tomorrow. Seems like the lowest one "feasible" is at $7200. Although I think there is too much support for us to get that low by the end of the day tomorrow. But we shall see.