This article is also available in Spanish.
Some analysts have raised their concerns that Bitcoin may experience a possible crash that will be driven by a gap in the Chicago Mercantile Exchange (CME) leading to a significant drop in its value.
As Bitcoin needs to fill the gap, crypto traders predict that it may push the first-born cryptocurrency closer to the critical CME gap, suggesting that its price may drop as low as $77,000 per coin.
Related Reading
Bitcoin Could Slip To $77,000
Crypto analyst Egrag Crypto suggested that the major correction that Bitcoin was undergoing could push the coin down to the $77,000 mark.
Egrag added that since October 2022, the flagship cryptocurrency has been reduced by about seven drops, adding, “The average drop in these events is about 23.53%.”
#BTC Dumping – Average Dump & CME (70K-74K): How & Why?
1⃣Average descent:
From October 2022, #BTC he has experienced nearly seven critical drops. Here is the percentage drop: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 are looking at a potential downside towards the end of the CME GAP (between 77K-80K). This represents a decrease of 25%, which is in line with the average decrease seen in this cycle,” said Egrag in the post.
Egrag also noted that the current 21-week EMA is around $80,000, suggesting that “another flash crash may be imminent.”
CME Gap At $80,000
Another crypto analyst, XForceGlobal, reminded traders that “there is a 1D CME gap at $80,000.”
XForceGlobal said that historically, 90% of daily CME vacancies have been filled since 2018.
Just a friendly reminder: there is a 1D CME gap at $80,000.
Statistically, as of 2018, with increasing interest in slots, 90% of 1-day time slots larger than $1,000 are eventually filled (be anything less than 1D of time slot).
The tricky part with CME posts is… pic.twitter.com/wJC2ih5U8M
– XForceGlobal (@XForceGlobal) December 24, 2024
However, the crypto analyst noted that it is difficult to predict when and how the CME vacancies will be filled.
“The tricky part with CME vacancies is that their timing and manner of filling is always unpredictable,” XForceGlobal said in a post.
Crypto analyst sees potential cases to fill CME vacancies. In another scenario, XForceGlobal suggests that it could enter a deep wave or wave-4 correction, bringing Bitcoin down to the $77,000 to $80,000 level.
In another scenario, XForceGlobal said it could be filled “in the near future with a hypothetical 1-2 correction after we finally end the bullish momentum,” a scenario that could cause BTC to drop to $46,000.
Related Reading
Market Dump in January?
Egrag believes that market makers may use the upcoming inauguration of President-elect Donald Trump to fuel Bitcoin’s selling pressure, contributing to its imminent crash.
“Market makers are known to take chances in times of crisis. Expect a market dump on Inception Day (January 20, 2025). This could be a good place for real estate, which may leave many new entrants nervous,” said the crypto analyst.
Egrag outlined two possible scenarios from the current market situation, suggesting that in one scenario, Bitcoin could pump up to $120,000 and later experience a rejection from the CME GAP before “resuming bull run in 2025.”
In another possible scenario, the crypto analyst said that BTC could reverse the CME gap of $ 70,000 to $ 75,000 level before the resumption of the bull.
Featured image from Pexels, chart from TradingView