Some analysts expressed their concerns that Bitcoin could experience a crash that could be driven by the gap in the Chicago Mercantile Exchange (CME) leading to a significant drop in its price.
As Bitcoin needs to fill the gap, crypto traders predict that it could push the first digital currency close to the CME critical gap, suggesting that its price could go as low as possible. to $77,000 per coin.
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Bitcoin could slide to $77,000
The crypto analyst Egrag Crypto suggested that the big corrections that Bitcoin has been making could cause the coin to fall to the $77,000 mark.
Egrag said that since October 2022, there have been about seven major falls on the major digital currency, saying, “The average fall across these events is about 23.53%.”
#BTC Drop – Average Dump & CME (70K-74K): How & Why?
1⃣ average drop:
From October 2022, #BTC has seen nearly seven major falls. Here's the declining percentage: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 are looking at a potential drop to the lower end of the CME GAP (between 77K-80K). This represents a decline of 25%, aligning well with the average decline seen 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 “the 1D CME gap is at $80,000.”
XForceGlobal said that historically, 90% of CME's daily gaps are larger than last filled since 2018.
Just a friendly reminder: the 1D CME gap is $80,000.
Statistically, as of 2018, with the growing interest in gaps, 90% of 1-day chart gaps greater than $1,000 are eventually filled (ignore anything below chart- time 1D).
The tricky part with CME gaps is… pic.twitter.com/wJC2ih5U8M
— XForceGlobal (@XForceGlobal) December 24, 2024
However, the crypto analyst noted that it is difficult to predict the time and manner of filling CME gaps.
“The tricky part with CME gaps is that their timing and filling method remains unpredictable,” XForceGlobal said in a post.
The crypto analyst sees possible scenarios to fill the CME gaps. In one scenario, XForceGlobal suggests that it could be recorded through a deep wave or wave-4 correction, bringing Bitcoin down to the level of $77,000 to $80,000.
In another scenario, XForceGlobal said it can be filled “At a later stage during the expected 1-2 correction after we finally finish this bull trend,” a scenario that ' the BTC could bring down to $46,000.
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January market dump?
Egrag believes that market makers may be using the upcoming inauguration of President-elect Donald Trump to fuel selling pressure for Bitcoin, adding to the impending crash.
“Market makers are known for taking chances in times of crisis. Expect a market dump on Inauguration Day (January 20, 2025). This could be the perfect local top for selling, possibly leaving many newbies in shock,” the crypto analyst said.
Egrag outlined two scenarios that could emerge from the current market situation, suggesting that Bitcoin could in one scenario pump to $120,000 and then experience a dump to the CME GAP before “starting the bull in 2025.”
In another possible scenario, the crypto analyst said BTC could fall to the CME gap of $70,000 to the $75,000 level before the bull resumes.
Featured image from Pexels, chart from TradingView
