Quick Facts

Bitcoin’s price action is targeting all-time highs, with its recent ascent leaving many wondering if the bulls will ultimately defend the coveted $117,000 mark.

Bitcoin Prices May Close $117,000 CME Gap: 5 Key Developments to Watch This Week

As the week begins, Bitcoin (BTC) is on the spotlight, with its price action targeting all-time highs. The cryptocurrency’s recent ascent has been nothing short of remarkable, leaving many wondering if the bulls will ultimately defend the coveted $117,000 mark.

What is the $117K CME Gap?

For the uninitiated, a CME gap refers to a price gap that occurs when a futures contract’s settlement price leaves a void between two trading days. In the case of Bitcoin, the $117K CME gap is a relatively recent development, stemming from a discrepancy between the cryptocurrency’s spot and futures prices. On July 7, the CME Group’s Bitcoin futures contract settled at $116,800, while the spot price was hovering around $115,000.

Bitcoin’s Market Fundamentals

In recent weeks, the cryptocurrency has witnessed a surge in institutional investment, driven by the rise of Bitcoin-friendly investment products and the growing adoption of cryptocurrency by traditional investors. Moreover, the ongoing economic uncertainty and central banks’ quantitative easing measures have fueled concerns about inflation and the long-term value of fiat currencies. These factors have contributed to a sustained rally in Bitcoin’s price, which has now reached levels last seen in mid-2019.

Why Filling the $117K CME Gap Matters

So, why does filling the $117K CME gap matter? From a technical perspective, the gap has created a channel of resistance that needs to be breached for Bitcoin to reach new all-time highs. Failure to fill the gap could lead to a retreat in the price, which would potentially erase some of the gains made in recent weeks. Furthermore, the CME gap has become a psychological barrier for traders, who may be wary of buying the cryptocurrency until the gap is filled.

5 Key Takeaways for this Week

Now that we’ve established the significance of the $117K CME gap, let’s distill the key takeaways from this week’s Bitcoin update:

1. Institutional Investors Are Still Buying In: The influx of institutional capital into Bitcoin has been a driving force behind the cryptocurrency’s recent price surge. This trend is likely to continue, with more institutional investors looking to hedge against inflation and diversify their portfolios.
2. Filling the CME Gap Could Spark a New Wave of Price Growth: If Bitcoin successfully fills the $117K CME gap, it could create a psychological boost for the market, potentially sparking a new wave of price growth. This would be driven by the optimism and confidence of traders, who would be more likely to buy the cryptocurrency at higher prices.
3. On-Chain Activity Is Strong: On-chain metrics, such as Bitcoin’s transaction volume and active addresses, have been showing signs of strengthening in recent weeks. This suggests that the cryptocurrency’s price growth is being driven by a growing user base and increased adoption.
4. Bears are on High Alert: As Bitcoin approaches the $117K mark, bears are growing increasingly anxious. This has led to a surge in put options, as traders hedge against potential losses. If the price fails to fill the CME gap, this could create a buying opportunity for bulls.
5. The Mid-Term Outlook Remains Bullish: Despite the potential for short-term volatility, the mid-term outlook for Bitcoin remains bullish. With more institutional investors entering the market, and the growing adoption of cryptocurrency by mainstream consumers, the potential for long-term price growth remains significant.