Will This 'Gap' Pull Bitcoin Down To $9.6k In 2023?
The past month has been quite monotonous for Bitcoin. The largest crypto asset has mostly remained sandwiched in the narrow $1000 range between $16.3k-$17.3k in the said period. However, traders have gradually started stepping back into Bitc OI n’s arena. A recent report from Arcane Research p OI nted out that the CME open interest climbed towards the end of last year. As shown below, CME’s OI surged above 80,000 BTC in December 2022. Yet, it has not left behind any directional cues. P OI nting out why, the report noted, “ … the growth has been accompanied by a flat futures basis. Thus, it is challenging to infer any directional information related to the recent increase in active institutional participation. “ Source: Arcane Research CME Gap Dictates Bitcoin’s Movement The CME gap is quite an interesting trading notion. Technically speaking, it is the difference in the futures contracts’ trading price of the new week’s op...