CME Gap Threatens Bitcoin With Potential Drop To $77,000

Some analysts have raised concerns that Bitcoin could face a potential collapse which would be driven by a gap on the Chicago Mercantile Exchange (CME) leading to a significant drop in its price.

As Bitcoin needs to fill the gap, cryptocurrency traders are speculating that it may push the No. 1 cryptocurrency close to the critical CME gap, suggesting that its price could fall to $77,000 per coin.

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Bitcoin may fall to $77,000

Cryptocurrency analyst Egrag Crypto suggested that Bitcoin’s massive corrections could see the coin drop to the $77,000 level.

Since October 2022, the major cryptocurrency has had about seven significant declines, Igrag added, adding that “the average decline across these events is about 23.53%.”

#Bitcoin Decline – Average Discharge and CME (70K-74K): How and Why?

1- Average decline:
Since October 2022, #Bitcoin Nearly seven large drops were experienced. The percentage of decline is as follows:

1) 22.70%
2) 20.18%
3) 21.70%
4) 21.42%
5) 23.27%
6) 25.82%
7) 29.65%

📊 Average decline… pic.twitter.com/Vz6QiZlnzF

— Egrag Crypto (@egragcrypto) December 27, 2024

“From the current high of around 108,975, we are looking at a potential decline to the lower end of the CME gap (between 77K and 80K). This represents a 25% decline, which is well in line with the average decline,” Igraj said in a post. Noticeable during this session.

Igraj also noted that the current weekly moving average of $21 is around $80,000, suggesting that “there could be another flash crash on the horizon.”

CME gaps at $80,000

Another cryptocurrency analyst, XForceGlobal, reminded traders that “there is a 1D CME gap at $80,000.”

XForceGlobal said that historically, 90% of daily CME gaps larger than were eventually closed since 2018 have been closed.

$ Bitcoin

Just a friendly reminder: There is a 1D CME gap of $80,000.

Statistically, since 2018, with the increased interest in gaps, 90% of 1-day time frame gaps larger than $1,000 have eventually been closed (ignoring anything less than the 1D time frame).

The hard part about CME gaps is… pic.twitter.com/wJC2ih5U8M

– XForce Global (@XForceGlobal) December 24, 2024

However, the cryptocurrency analyst noted that it is difficult to predict when and how the CME gaps will be filled.

“The difficult part about CME gaps is that the timing and method of filling them is unpredictable,” XForceGlobal said in a post.

Cryptocurrency analyst sees potential scenarios to fill CME gaps. In one scenario, XForceGlobal notes that it could be presented by a deep wave or wave 4 correction, sending Bitcoin falling to the $77,000 to $80,000 level.

In another scenario, XForceGlobal said it could be filled “at a later stage by a supposed 1-2 correction after we finally end this bull run,” a scenario that could see Bitcoin fall to $46,000.

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Market dump in January?

Igrag believes that market makers may use the upcoming inauguration of President-elect Donald Trump to stimulate Bitcoin selling pressure, contributing to its impending collapse.

“Market makers are known to seize opportunities during crises. Expect the market to empty on opening day (January 20, 2025). This could be the perfect local high for the sell-off, and will likely leave many newcomers in a state of uncertainty,” the cryptocurrency analyst said. “Panic.”

Igrag outlined two scenarios that could unfold from the current market state, noting that in one scenario, Bitcoin could pump to $120,000 and later face a CME GAP dump before “resuming the rally in 2025.”

In another possible scenario, the cryptocurrency analyst said that Bitcoin could fall to the $70,000 CME gap to the $75,000 level before resuming the uptrend.

Featured image from Pexels, chart from TradingView