Bitcoin Plunge to $83.5K Fills CME Futures Gap, Nearly $1B in Long Positions Liquidated
A significant price gap in Bitcoin’s (BTC) CME futures has now been fully closed, following Monday’s surge to $92,000. This movement, triggered by renewed institutional enthusiasm after President Donald Trump’s announcement of a U.S. crypto strategic reserve, initially pushed BTC and several altcoins—including Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA)—sharply higher.
However, that rally left behind a major gap in the CME Bitcoin futures chart, with Friday’s close at $84,500 and Monday’s opening at $95,300. By Tuesday’s Asian trading session, BTC had retraced to $83,500, effectively filling the gap.
CME gaps—price discrepancies resulting from the exchange’s weekend closure while crypto spot markets trade 24/7—have historically acted as price magnets, drawing Bitcoin back to levels where prior trading activity was absent.
Market data confirms that most of these gaps eventually close, often signaling a corrective move after sharp price swings. Tuesday’s price drop continues that trend, as BTC’s rapid retreat erased over $900 million in leveraged long positions within the last 24 hours, bringing total three-day liquidations to more than $1.5 billion.
Nearly $400 million in bullish bets were wiped out in the latest wave of forced liquidations, particularly in late U.S. and early Asian trading hours, as BTC reversed from its Monday highs.
Liquidations occur when exchanges forcefully close leveraged positions due to insufficient margin, typically when price movements push traders’ collateral below required levels. Excessive liquidations often act as contrarian signals, potentially indicating overbought conditions ahead of a broader market shift.
So, is this pullback a healthy reset for the next rally? Perhaps not.
A bearish breakdown in price action has now put another CME futures gap—this time below $80,000—back in focus. That gap, which formed three months ago when Trump first secured re-election in early November, remains unfilled. Bitcoin futures opened above $81,000 following the election, slightly above the election-day high of $77,930.
With volatility running high, traders are closely watching whether BTC will revisit this lower gap or stabilize for another leg higher.
