Bitcoin (BTC) prices continue to experience sharp fluctuations in recent times. Gaps in CME futures are historically considered a critical indicator for Bitcoin prices, and these gaps are often expected to be filled. Bitcoin, after the significant price gap it left behind last week following a rise, filled the gap in CME futures, which could be a precursor to another increase in the market. However, this also led to a major wave of liquidations, resulting in 1 billion dollars worth of positions being liquidated. Trump’s crypto reserve announcement and Bitcoin surge In recent weeks, the rise in the price of Bitcoin gained momentum following the announcement of a strategic crypto reserve by US President Donald Trump. Trump announced a reserve plan covering major cryptocurrencies such as Bitcoin, Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA) in a statement he made on Sunday night. This announcement increased excitement among institutional investors, causing the price of Bitcoin to rise to $92,000. However, following this surge, a significant gap formed on the CME Bitcoin futures chart. The price of BTC closed at $84,500 on Friday, rose to $95,300 on Monday, leaving a large gap of $10,800 in between. This gap was completely filled on Tuesday afternoon in Asia as BTC fell to $83,500. By Wednesday at 9 am in Turkey, BTC was at $87,000. CME gaps and historical trends CME gaps are known as price differences that occur due to the 24-hour trading of spot markets while the exchange is closed on weekends. Historically, these gaps have served as a magnet for Bitcoin prices. Data shows that CME futures gaps often get filled in the end and these processes generally signal a correction after sharp price movements. The gap-filling movement on Tuesday was recorded as an example of Bitcoin turning into balance after a explosive rise. Liquidations and high liquidations The recent price movements in Bitcoin led to a major wave of liquidations. Approximately $900 million in long bets on CME futures were liquidated, with total losses exceeding $1.5 billion over a three-day period. The price decline on Tuesday resulted in about $400 million in bets being liquidated, especially following the pullback in Bitcoin prices after Monday’s rise. These liquidations mostly occurred during late hours in the US and early hours in Asia. Liquidations occur when leveraged positions are forcibly closed due to investors losing their initial margin. If an investor cannot meet the margin requirements of a leveraged position, meaning they do not have enough funds, the position is liquidated. High liquidations are generally considered an indication that overbought assets are ready to reverse or realize profits. This creates a critical data point for investors following market movements. Previous gaps in CME futures and bear market dynamics However, filling the gap and experiencing a significant liquidation may not be a situation that market participants should be celebrating. Particularly, a gap that formed three months ago at levels below $80,000 in CME futures is being watched more attentively now. After the US presidential elections in November, a gap above $81,000 in CME futures formed following an open at $77,930, and these levels are currently back on the agenda. While Bitcoin has rallied to $92,000, indicating a significant rally, CME futures and market liquidations may currently signal a correction phase. This correction process could lead to the rebalancing of Bitcoin prices and potentially pave the way for another increase. The market is highly sensitive to such movements and critical levels have emerged that investors need to carefully monitor.