CME Gap Threatens Bitcoin With Potential Drop To $77,000
Some analysts worry that Bitcoin could trigger a crash due to a sharp price drop caused by a gap on the Chicago Mercantile Exchange (CME).
As Bitcoin needs to fill this gap, cryptocurrency traders predict it could push the first-born cryptocurrency near the CME critical gap, suggesting its price could go as low as $77,000 per coin.
Related reading
Bitcoin could fall to $77,000
Cryptocurrency analyst Egrag Crypto said that the massive correction experienced by Bitcoin could cause Bitcoin to plummet to the $77,000 mark.
Egrag added that the flagship cryptocurrency has experienced approximately seven major declines since October 2022, adding, “the average decline in these events was approximately 23.53%.”
#BTC Decline – Average Decline and CME (70K-74K): How and Why?
1⃣Average drop:
From October 2022, #BTC It has experienced nearly seven sharp declines. Here are the percentage declines:1) 22.70%
2) 20.18%
3) 21.70%
4) 21.42%
5) 23.27%
6) 25.82%
7) 29.65%📊 Average drop… pic.twitter.com/Vz6QiZlnzF
— EGRAG Crypto (@egragcrypto) December 27, 2024
“From the current high of around 108,975, we expect a possible drop to the lower end of the CME gap (between 77K-80K). This represents a 25% decline and is very consistent with the average decline observed this cycle,” Egrager said in a post.
Egrag also noted that the current 21-week EMA is around $80,000, indicating that “another flash crash may be coming.”
CME gap reaches $80,000
Another cryptocurrency analyst, XForceGlobal, reminded traders that “the 1D CME gap is at $80,000.”
XForceGlobal said that historically, 90% of daily CME gaps since 2018 have been eventually filled.
Friendly reminder: The one-dimensional CME gap is $80,000.
Statistically, since 2018, 90% of 1-day timeframe gaps over $1,000 have ended up being filled (ignoring anything below the 1D timeframe) as interest in the gap has grown.
The tricky part about the CME gap is… pic.twitter.com/wJC2ih5U8M
— XForceGlobal (@XForceGlobal) December 24, 2024
However, cryptocurrency analysts noted that it is difficult to predict when and how the CME gap will be filled.
“The tricky thing about the CME gap is that the timing and method of filling it remains unpredictable,” XForceGlobal said in a post.
Cryptocurrency analysts see possible solutions to fill CME’s void. In one scenario, XForceGlobal said a correction could occur through a deep wave or wave 4 correction, sending Bitcoin down to $77,000 to $80,000 levels.
In another scenario, XForceGlobal said that “the gap could be filled at a later stage with a hypothetical 1-2 correction, after we finally end this bull run,” a scenario that could see BTC plummet to 46,000 Dollar.
Related reading
Market plunge in January?
Egrag believes that market makers may take advantage of the impending inauguration of President-elect Donald Trump to trigger selling pressure on Bitcoin, leading to its imminent collapse.
“Market makers are known for seizing opportunities during crises. Expect a sell-off in the market on Inauguration Day (January 20, 2025). This could be the perfect local top for a sell-off that could send many newcomers into panic,” said the cryptocurrency analyst.
Egrag outlined two possible scenarios for current market conditions, suggesting that in one scenario, Bitcoin could rise to $120,000 and then experience a CME GAP plunge before “resuming the bull run in 2025.”
The cryptocurrency analyst said that in another possible scenario, BTC could fall to CME levels of $70,000 to $75,000 before the bull run resumes.
Featured images from Pexels, charts from TradingView
