Bitcoin Price Prediction: CME Gap Could Push BTC Down to $77,000

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Bitcoin Price Prediction: CME Gap Could Push BTC Down to $77,000
Bitcoin Price Prediction: CME Gap Could Push BTC Down to $77,000
December 27, 2024


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Market analysts anticipate an imminent Bitcoin crash that would see the asset fill the CME gap on the latest visible 1-week chart.
In this latest Bitcoin price news, Bitcoin recently fell back to $95,212 after briefly breaking above $99,000 during the Christmas rally. Continued market volatility has raised concerns about further losses, with analysts warning a drop to $77,000 could be in order to fill a key CME gap.
Factors Pointing to a Potential Bitcoin Drop
Well-known analyst EGRAG pointed out that since October 2022, Bitcoin has experienced several major corrections, with an average loss of about 23.5%.
The current market environment suggests that a similar pattern may occur, with potential declines consistent with historical averages. Notably, this would leave Bitcoin’s next key support area between $77,000 and $80,000, where there is a CME gap.

Bitcoin CME Gap | EGRAG Crypto
Notably, this CME gap occurred following the uptrend that began in early November following the election of Donald Trump. Bitcoin closed the week ending November 8 at $77,360 but started the following week on November 11 at $81,210, forming this gap.
EGRAG also pointed out the 21-week EMA, which is currently located around $80,000. According to the analyst, this indicator suggests that another flash crash to these levels could occur.

Bitcoin 21W EMA | EGRAG Crypto
Additionally, EGRAG mentioned that market makers may use upcoming events, such as the U.S. presidential inauguration in January 2025, as a trigger for selling pressure. This is another event that could precipitate the impending collapse.
However, he remains confident that Bitcoin will eventually reach $120,000 at some point. Nonetheless, EGRAG is uncertain as to whether the crypto asset will rise to $120,000 and then drop to fill the CME gap, or will immediately drop to the CME gap and then rise to $120,000.
Importance of CME Gaps
Meanwhile, another analyst, XForceGlobal, also highlighted the importance of the CME gap in Bitcoin’s price action. He highlighted historical data showing that the market eventually filled the daily CME gap at 90%, with gaps exceeding $1,000 in size.

$BTC
Friendly reminder: There is a 1D CME gap at $80,000.
According to statistics, since 2018, as interest in gaps has grown, every gap above $1,000 on the 1-day timeframe of 90% has eventually been filled (ignoring anything below that on the 1D timeframe).
The tricky thing about CME gaps is… pic.twitter.com/wJC2ih5U8M
— XForceGlobal (@XForceGlobal) December 24, 2024

However, the timing and manner of filling such gaps often remain unpredictable. The analyst outlined two scenarios: Bitcoin could experience a fourth-wave correction that would result in a drop to the $77,000 to $80,000 range, or it could return to this gap again later as the larger market corrects to the $46,000 level.
Other experts, such as Ali Martinez, have previously stressed the importance of Bitcoin holding the current support zone between $97,041 and $93,806. He believes that failure to hold this level could result in a drop to $70,085 as there is a lack of real support below the range.

# Bitcoin $ BTC’s key support area now lies between $97,041 and $93,806. If this critical demand area fails to hold, we could see a sharp drop towards $70,085 as there is little support below. pic.twitter.com/cHdr5mKxhi
— Ali (@ali_charts) December 22, 2024

Additionally, the Elliott Wave analyst noted that Bitcoin may not have completed its B-wave correction yet. Interestingly, if the price fails to break out of $99,892 on a sustainable basis, further declines may unfold that could push the asset towards the $80,000 to $90,000 range.

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