Market analysts are anticipating a potential Bitcoin crash that would allow the asset to fill a CME gap on the 1-week chart. Bitcoin recently saw a drop to $95,212 after briefly surpassing $99,000 during a Christmas rally. Concerns about further declines have arisen due to the ongoing market turbulence, with analysts warning of a potential drop to $77,000 to close a critical CME gap. EGRAG, a prominent analyst, noted that Bitcoin has experienced several significant corrections since October 2022, with average losses of about 23.5%. The current market environment suggests a similar pattern could unfold, with a potential decline aligning with the historical average, setting Bitcoin’s next key support zone in the $77,000–$80,000 range.
The CME gap, which occurred back in early November after Donald Trump’s election victory, has been a point of focus for analysts like EGRAG. Bitcoin saw a gap between $77,360 and $81,210, with EGRAG pointing out that the 21-week EMA currently sits near $80,000, suggesting the possibility of another flash crash to these levels. Additionally, upcoming events such as the U.S. presidential inauguration in January 2025 could be a trigger for selling pressure, potentially contributing to the imminent crash. Despite this, EGRAG remains confident that Bitcoin will eventually reach $120,000, but it is uncertain whether the asset will first rally to $120,000 before dipping to fill the CME gap or if it will immediately dip to the CME gap before rallying to the $120,000 mark.
Another analyst, XForceGlobal, also highlighted the significance of CME gaps in Bitcoin’s price behavior, emphasizing that historical data indicates that the market has filled 90% of daily CME gaps larger than $1,000. However, the timing and method of filling these gaps can be unpredictable. XForceGlobal outlined two scenarios: Bitcoin could experience a wave-4 correction, resulting in a drop to the $77,000–$80,000 range, or it could revisit the gap much later, possibly during a more significant market correction to the $46,000 level. Other experts, like Ali Martinez, have stressed the importance of Bitcoin holding its current support zone between $97,041 and $93,806, warning of a potential decline to $70,085 if this level is not maintained.
Elliott Wave analysts propose that Bitcoin may not have completed its wave-B correction and suggest that a failure to break above $99,892 sustainably could lead to a further decline, potentially taking the asset into the $80,000–$90,000 range. The market’s volatility and the influence of upcoming events continue to fuel speculation about Bitcoin’s price movements in the near future. As analysts closely monitor key support levels and potential market triggers, the anticipation of a significant Bitcoin crash looms on the horizon as the asset seeks to fill the CME gap on the 1-week chart. Bitcoin investors and traders are advised to stay vigilant and consider the potential implications of these factors on their investment strategies in the coming weeks.
