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Some analysts raised their concerns that Bitcoin might experience a possible crash which will be driven by the Chicago Mercantile Exchange (CME) gap leading to a huge drop in its price.
Since Bitcoin needs to fill in the gap, crypto traders predict it might push the firstborn cryptocurrency near the critical CME gap, suggesting that its price could go as low as $77,000 per coin.
Bitcoin Could Slide To $77,000
Crypto analyst Egrag Crypto suggested that the massive corrections that Bitcoin has been experiencing could cause the coin to plunge to the $77,000 mark.
Egrag added that since October 2022, the flagship cryptocurrency has been subjected to about seven considerable drops, adding, “The average drop across these events is approximately 23.53%.”
#BTC Drop – Average Dump & CME (70K-74K): How & Why?
1⃣Average Drop:
Since October 2022, #BTC has experienced nearly seven significant drops. 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%📊 The average drop across… pic.twitter.com/Vz6QiZlnzF
— EGRAG CRYPTO (@egragcrypto) December 27, 2024
“From the current high of around 108,975, we’re looking at a potential drop to the lower end of the CME GAP (between 77K-80K). This represents a 25% decline, aligning well with the average drop observed during this cycle,” Egrag said in a post.
Egrag also noted that the current 21 Weekly EMA is around $80,000, suggesting that “another flash crash could be on the horizon.”
CME Gap At $80,000
Another crypto analyst, XForceGlobal, reminded traders that “there’s a 1D CME gap at $80,000.”
XForceGlobal said that historically, 90% of daily CME gaps larger than have been eventually filled since 2018.
Just a friendly reminder: there’s a 1D CME gap at $80,000.
Statistically, since 2018, with the growing interest in gaps, 90% of 1-Day timeframe gaps larger than $1,000 have eventually been filled (ignore anything below the 1D timeframe).
The tricky part with CME gaps is… pic.twitter.com/wJC2ih5U8M
— XForceGlobal (@XForceGlobal) December 24, 2024
However, the crypto analyst noted that it is hard to predict the timing and method of filling CME gaps.
“The tricky part with CME gaps is that their timing and method of filling remain unpredictable,” XForceGlobal said in a post.
The crypto analyst sees possible scenarios to fill the CME gaps. In one scenario, XForceGlobal suggests it could be filed through a deep wave or wave-4 correction, bringing Bitcoin down to the $77,000 to $80,000 level.
In another scenario, XForceGlobal said it can be filled “at a later stage via the assumed 1-2 correction after we finally finish off this bull run’s impulse,” a scenario which might result in the BTC to plummet to $46,000.
A Market Dump In January?
Egrag believes that market makers might use the upcoming inauguration of President-elect Donald Trump to trigger selling pressure for Bitcoin, contributing to its imminent crash.
“Market makers are known for seizing opportunities during crises. Expect a market dump on Inauguration Day (January 20, 2025). This could be the perfect local top for a sell-off, likely leaving many newcomers in a panic,” the crypto analyst said.
Egrag outlined two scenarios that might unfold from the current market condition, suggesting that in one scenario, Bitcoin could pump to $120,000 and later experience a dump to the CME GAP before “resuming the bull run in 2025.”
In another possible scenario, the crypto analyst said that BTC could drop to the CME gap of $70,000 to $75,000 level before the resumption of the bull run.
Featured image from Pexels, chart from TradingView
