Bitcoin witnessed a dramatic increase of over 39% since November 5th, reaching a historical peak at $93,250. Currently, the prominent cryptocurrency has experienced a minor setback, trading near $88,800. This retracement, according to market analyst Quinten Francois, could deepen, potentially bringing prices down below $80,000 due to a substantial CME gap situated below this threshold.
CME gaps, arising from price variances between the close of one trading day and the opening of the next on the Chicago Mercantile Exchange Bitcoin futures chart, often appear after significant price shifts and usually close as the market adjusts. Francois pinpoints a gap at $78,000, signaling a possible 12% price retracement.
This correction may benefit Bitcoin, allowing liquidation of long positions and paving the way for potential future upswings.
Historically, such patterns provide the liquidity critical for cryptocurrency advancement. Nonetheless, increased selling pressure could push Bitcoin towards support levels at $72,000 and $69,000, potentially revisiting prices similar to those before Donald Trump’s electoral win on November 5th, which many view as a catalyst for the recent surge.
Throughout his campaign, Donald Trump emphasized promoting digital asset growth, spotlighting Bitcoin as a focal point in his economic strategy.
His vision includes declaring Bitcoin a strategic reserve asset for the U.S. government. Pro-crypto Senator Cynthia Lummis has backed this initiative, proposing the Bitcoin Act aimed at increasing U.S. reserves to 1 million coins, potentially influencing supply dynamics and price positively.
Francois foresees a crypto bear market looming around 2026 to 2027, indicating a predicted prolonged bullish phase for Bitcoin and digital assets over the next two years. Yet, he warns that if the $78,000 CME gap remains unaddressed before a major rally, it could necessitate resolution during the anticipated bear market, projecting additional market volatility.