What Is Gap?
A gap is a price zone where no trading activity occurred between the close of one candle and the open of the next. Gaps appear as visible voids on candlestick charts. In crypto, the most notable gaps occur on CME Bitcoin futures, which trade during regular market hours — the weekend close-to-Monday open frequently creates gaps.
How Gap Works
Gaps are classified as common gaps (occur within a range, usually fill quickly), breakaway gaps (mark the start of a new trend, often don't fill for a long time), runaway gaps (occur mid-trend, confirm strength), and exhaustion gaps (occur at the end of a trend, signal reversal). CME gaps in crypto fill approximately 90% of the time, though the timeline varies from hours to months.
Why It Matters for Traders
CME gaps are one of the most reliable trading signals in crypto. When Bitcoin opens on CME Monday significantly above or below Friday's close, the gap often fills within days. Traders use unfilled gaps as price targets, especially when the gap aligns with other technical confluence like horizontal support/resistance or volume profile levels.
