A new Bitcoin Chicago Mercantile Exchange (CME) gap has just been opened around $78,000 and $80,700.

Bitcoin is currently facing increased volatility as it moves closer to filling a key CME gap between $78,000 and $80,700.

A new Bitcoin Chicago Mercantile Exchange (CME) gap has just opened roughly around $78,000 and $80,700. Analysts warn that this price range could act as a magnet for further downturns in the Bitcoin price, making it a critical area to watch in the coming days.

As crypto analyst Rekt Capital noted on X (formerly Twitter), Bitcoin is now encountering heightened volatility as it approaches the final stages of filling a key CME gap. A CME gap refers to the price discrepancies on the Bitcoin Futures chart traded on the Chicago Mercantile Exchange.

Chart: Rekt Capital

A CME gap arises when the futures market closes at a different price than where the cash market opens on the subsequent trading day. Typically, these gaps get filled as the futures price converges with the cash price.

In early November 2024, when Bitcoin experienced a sharp price breakout above a crucial resistance zone, a gap formed in the CME futures chart. This gap occurred as the futures market closed at around $78,000, while the cash market opened at $80,700.

Since then, Bitcoin has yet to return to this zone. However, according to Rekt Capital, the cryptocurrency is rapidly approaching this price range. After reaching a peak above the $100,000 mark, Bitcoin quickly reversed course, encountering a deep correction that has since pushed it below the $79,000 zone.

The analyst stated that Bitcoin’s recent decline closely follows historical fractals, where CME gaps usually get filled before a new direction for the cryptocurrency is determined.

Chart: Rekt Capital

If Bitcoin continues on its current downward trajectory, the price range between $78,000 and $80,000 will be crucial to observe. Maintaining support within this band could be pivotal for reversing the cryptocurrency’s current downward trajectory and setting the stage for renewed bullish momentum.

However, if the cryptocurrency fails to hold this range and breaks through it, the next major support levels to watch will be at $71,535 and $60,590.

Other market analysts share a similar view. Crypto VIP Signal projected that if Bitcoin fails to maintain the CME gap price level, it could continue to decline toward the $72,000 – $74,000 support area.

The analyst noted that this gap range is Bitcoin’s last chance to stall its decline and potentially rebound. Otherwise, the cryptocurrency might face an extended downward movement, with the next significant support zone around $60,500.

This gloomy outlook arises as the market is displaying an increasingly bearish bias. Despite a recent surge above the $93,000 zone, selling pressure quickly pushed the cryptocurrency back below $79,000.