Bitcoin (BTC) Could Slide to $77,000 as Analysts Eye CME Gap, Pre-Inauguration Market Dump

Some analysts raised their concerns that Bitcoin might experience a possible crash which will be driven by the Chicago Mercantile Exchange (CME) gap leading to a huge drop in its price.

Some crypto analysts have expressed their concerns over a possible Bitcoin crash, which could be driven by the Chicago Mercantile Exchange (CME) gap leading to a drastic drop in its price.

As Bitcoin is yet to fill the gap, several crypto traders have predicted that it might push the primary cryptocurrency closer to the critical CME gap, suggesting that its price could go as low as $77,000 per coin.

Bitcoin Could Slide To $77,000

According to crypto analyst Egrag Crypto, the massive corrections that Bitcoin has been experiencing could lead to a plunge to the $77,000 mark.

Egrag added that seven significant drops have impacted the flagship cryptocurrency since October 2022, and the average drop across these events is approximately 23.53%.

“From the current high of around 108,975, we're looking at a potential drop to the lower end of the CME GAP (between 77K-80K). This represents a 25% decline, aligning well with the average drop observed during this cycle,” stated Egrag 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, highlighted to traders that “there's a 1D CME gap at $80,000.”

Historically, 90% of daily CME gaps larger than have been eventually filled since 2018, according to XForceGlobal.

However, the crypto analyst noted that it is challenging to predict the timing and method of filling CME gaps.

“The tricky part with CME gaps is that their timing and method of filling remain largely unpredictable,” stated XForceGlobal in a post.

The crypto analyst sees two possible scenarios to fill the CME gaps. In one scenario, XForceGlobal suggests it could be filed through a deep wave or wave-4 correction, bringing Bitcoin down to the $77,000 to $80,000 level.

In another scenario, it can be filled “at a later stage via the assumed 1-2 correction after we finally finish off this bull run's impulse,” a scenario which might result in the BTC to plummet to $46,000, according to XForceGlobal.

A Market Dump In January?

Egrag believes that market makers might use the upcoming inauguration of President-elect Donald Trump to trigger selling pressure for Bitcoin, contributing to its imminent crash.

“Market makers are known for seizing opportunities during crises. Expect a market dump on Inauguration Day (January 20, 2025). This could be the perfect local top for a sell-off, likely leaving many newcomers in a panic,” stated the crypto analyst.

Egrag outlined two scenarios that might unfold from the current market condition, suggesting that in one scenario, Bitcoin could pump to $120,000 and later experience a dump to 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 of $70,000 to $75,000 level before the resumption of the bull run.

Featured image from Pexels, chart from TradingView