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.

Since Bitcoin needs to fill in the gap, crypto traders predict it might push the firstborn cryptocurrency near the critical CME gap, suggesting that its price could go as low as $77,000 per coin.

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Bitcoin Could Slide To $77,000

Crypto analyst Egrag Crypto suggested that the massive corrections that Bitcoin has been experiencing could cause the coin to plunge to the $77,000 mark.

Egrag added that since October 2022, the flagship cryptocurrency has been subjected to about seven considerable drops, adding, “The average drop across these events is approximately 23.53%.”

#BTC Drop – Average Dump & CME (70K-74K): How & Why?

1⃣Average Drop:
Since October 2022, #BTC has experienced nearly seven significant drops. Here are the percentage declines:

1) 22.70%
2) 20.18%
3) 21.70%
4) 21.42%
5) 23.27%
6) 25.82%
7) 29.65%

📊 The average drop across… pic.twitter.com/Vz6QiZlnzF

— EGRAG CRYPTO (@egragcrypto) December 27, 2024

“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,” Egrag said 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, reminded traders that “there’s a 1D CME gap at $80,000.”

XForceGlobal said that historically, 90% of daily CME gaps larger than have been eventually filled since 2018.

$BTC

Just a friendly reminder: there’s a 1D CME gap at $80,000.

Statistically, since 2018, with the growing interest in gaps, 90% of 1-Day timeframe gaps larger than $1,000 have eventually been filled (ignore anything below the 1D timeframe).

The tricky part with CME gaps is… pic.twitter.com/wJC2ih5U8M

— XForceGlobal (@XForceGlobal) December 24, 2024

However, the crypto analyst noted that it is hard 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 unpredictable,” XForceGlobal said in a post.

The crypto analyst sees 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, XForceGlobal said 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.

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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,” the crypto analyst said.

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

A popular crypto analyst says one technical signal suggests that top meme token Dogecoin (DOGE) could be primed for a bounce.

Ali Martinez tells his 104,600 followers on the social media platform X that the Tom DeMark (TD) Sequential Indicator presented a bullish signal for DOGE.

“The TD Sequential presents a buy signal on the Dogecoin DOGE four-hour chart, anticipating a price rebound!”

Traders use the TD Sequential Indicator to predict potential trend reversals for tokens based on the closing prices of their 13 previous bars or candles.

Martinez also notes that Dogecoin whales bought more than 90 million DOGE in the past two days.

DOGE is trading at $0.314 at time of writing, a fractional decrease in the past 24 hours.

Looking at Bitcoin (BTC), Martinez warns that traders should be worried if the top-ranked crypto asset by market cap drops below a certain price level.

“You don’t want BTC to dip below $92,730 –  it’s essentially free-fall territory if that level breaks.”

Martinez suggests that below $92,730, the next on-chain support for BTC hovers at around $69,000 based on Glassnode’s UTXO (Unspent Transaction Output) Realized Price Distribution, a metric that shows the amount of Bitcoin that last moved within a specific price bucket.

But while Martinez is sounding the alarm about a potential pullback for BTC, he notes that a 20-30% correction represents “the most bullish thing that could happen to Bitcoin.”

Bitcoin is trading at $94,671 at time of writing.

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