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Some analysts have expressed concern that Bitcoin could suffer a possible collapse that will be driven by the gap in the Chicago Mercantile Exchange (CME) leading to a huge drop in its price.
As Bitcoin needs to fill the gap, cryptocurrency traders predict that it could push the first-born cryptocurrency close to the critical CME gap, suggesting its price could drop to as low as $77,000 per coin.
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Bitcoin could slide to $77,000
Crypto analyst Egrag Crypto has suggested that the massive corrections that Bitcoin has undergone could send the coin plummeting to the $77,000 mark.
Egrag added that since October 2022, the flagship cryptocurrency has undergone approximately seven sizable declines, adding: “The average decline between these events is approximately 23.53%.”
#BTC Drop – Medium dump and CME (70K-74K): how and why?
1⃣Average drop:
From October 2022, #BTC suffered nearly seven significant declines. Here are the percentage drops:1) 22.70%
2) 20.18%
3) 21.70%
4) 21.42%
5) 23.27%
6) 25.82%
7) 29.65%📊 The average drop between… pic.twitter.com/Vz6QiZlnzF
— EGRAG CRYPTO (@egragcrypto) December 27, 2024
“From the current high of around 108,975, we foresee a potential decline towards the lower limit of the CME GAP (between 77,000 and 80,000). This represents a decline of 25%, aligning well with the average decline observed during this cycle,” Egrag said in a post.
Egrag further noted that the current weekly EMA is hovering around $80,000, suggesting that “another flash crash may be on the horizon.”
ECM gap at $80,000
Another crypto analyst, XForceGlobal, reminded traders that “there is a 1D ECM gap at $80,000.”
XForceGlobal said that, historically, 90% of daily ECM gaps have been filled compared to 2018.
Just a friendly reminder: there is a 1D ECM gap at $80,000.
Statistically, since 2018, with the growing interest in gaps, 90% of 1-day timeframe gaps above $1,000 have eventually been filled (ignore anything below the 1D timeframe).
The tricky part about ECM gaps is… pic.twitter.com/wJC2ih5U8M
— XForceGlobal (@XForceGlobal) December 24, 2024
However, the crypto analyst noted that it is difficult to predict the timing and method of filling the CME gaps.
“The tricky part about ECM gaps is that the timing and method of filling remains unpredictable,” XForceGlobal said in a post.
Crypto Analyst Sees Possible Scenarios to Fill CME Gaps. In one scenario, XForceGlobal suggests it could be filed through a deep wave or wave 4 correction, taking Bitcoin to the $77,000 – $80,000 level.
In another scenario, XForceGlobal said it can be filled “at a later stage via the supposed 1-2 correction after we finally finish the momentum of this bull run,” a scenario that could lead to BTC plummeting to $ 46,000.
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A market crash in January?
Egrag believes market makers could use the impending inauguration of President-elect Donald Trump to trigger selling pressure for Bitcoin, contributing to its impending collapse.
“Market makers are known for seizing opportunities during crises. Expect a market crash on Inauguration Day (January 20, 2025). This could be the perfect local high for a fire sale, likely leaving many newcomers in a panic,” the crypto analyst said.
Egrag outlined two scenarios that could play out from current market conditions, suggesting that in one scenario, Bitcoin could pump to $120,000 and subsequently experience a decline in 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 between $70,000 and $75,000 before the bull run resumes.
Featured image of Pexels, TradingView chart