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Cryptocurrency market plunges, Bitcoin erases gains of the week, is BTC's pullback due to filling the gap on the Chicago Mercantile Exchange?

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Cryptocurrency market plunges, Bitcoin erases gains of the week, is BTC

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Cryptocurrency Market Performance Over the Weekend

BTC and ETH reached $44,000 and $2,400 respectively last weekend, with competitive coins like OKT Chain OKT, Synthetix SNX, OKB, Cardano ADA showing strong performance since Friday.

SOL and AVAX prices even surged back to May 2022 levels at one point.

However, the cryptocurrency market started to decline around 8 a.m. Taiwan time on December 11.

Source: CMC

Bitcoin Loses Last Week's Gains

According to Coinbase data, BTC dropped to $40,300 and ETH to a low of $2,127.

Bitcoin's drop reached nearly -8%, and despite a slight rebound, it fell back to around the December 4 level, wiping out the gains of the past week.

BTC 1H

Is the Drop Due to CME Gap Fill?

Bitcoin analyst Willy Woo, with 100 followers on Twitter, recently pointed out that there was a gap in CME Bitcoin futures prices around $39,700 on December 3, implying that BTC would retrace and fill the gap at some point.

Based on his analysis, out of the 30 gaps in CME Bitcoin daily charts, 28 have already been filled, with a high probability of 93%. There is another unfilled gap on January 14, 15, 16, with prices around $20,000.

Unlike exchanges like Binance and Coinbase, CME does not operate 24/7, and there may be differences between closing and opening prices, depending on Bitcoin's price action at market close.

Some analysts believe that prices often revisit these levels during consolidation periods to fill the gaps.