Market analysts expect an impending crash for Bitcoin, which would allow the asset to close the last visible CME gap on the 1-week chart.
In this latest Bitcoin price news, Bitcoin recently fell to $95,212 after briefly surpassing $99,000 during a Christmas rally. The ongoing market turmoil has sparked fears of further declines, with analysts warning of a possible drop to $77,000 to close a critical CME gap.
Factors that indicate a possible Bitcoin decline
EGRAG, a prominent analyst, pointed out that Bitcoin has experienced several massive corrections since October 2022, with average losses of around 23.5%.
The current market environment suggests that a similar pattern could develop, with a possible decline in line with the historical average. Notably, this would place Bitcoin’s next key support zone in the $77,000-$80,000 area where a CME gap exists.
What is noteworthy is that this CME gap has occurred on the back the upward trend followed at the beginning of November Donald Trump’s election victory. Bitcoin closed the week ending November 8th at $77,360, but then began the next week beginning November 11th at $81,210, creating the gap.
EGRAG also drew attention to the 21-week EMA, which is currently around $80,000. According to the analyst, this metric suggests the possibility of another flash crash to these levels.
Additionally, EGRAG noted that market makers could take advantage of upcoming events like that Inauguration of the US President in January 2025 as a trigger for selling pressure. This is another event that could potentially contribute to the impending crash.
However, he remains confident Bitcoin…
