A new Bitcoin Chicago Mercantile Exchange (CME) gap has just been identified between $78,000 and $80,700. Analysts caution that this price range may serve as a magnet for further declines in Bitcoin’s value, highlighting it as an essential area to monitor in the days ahead.
According to crypto analyst Rekt Capital on X (formerly Twitter), Bitcoin is currently experiencing heightened volatility as it nears the closure of a significant CME gap within the $78,000 to $80,700 range. A CME gap indicates price discrepancies on the Bitcoin Futures chart traded at the Chicago Mercantile Exchange.
Open Bitcoin CME Gap Indicates Potential Further Decline
Typically, the CME Bitcoin Futures market operates solely on weekdays, which results in price movements during weekends leaving gaps. These areas typically get resolved as price action retraces to address the imbalances created.
The current CME gap for Bitcoin between $78,000 and $80,700 was established in early November 2024, coinciding with a rapid price breakout above resistance. Since that point, Bitcoin has yet to revisit this zone; however, Rekt Capital contends it is quickly approaching it now.
The analyst noted that after reaching a high above $100,000, Bitcoin rapidly retraced and underwent a significant correction, driving its price down to the current $79,267. Rekt Capital emphasizes that Bitcoin’s recent downturn aligns with historical patterns where CME gaps get filled before the price charts a new course.
According to his chart analysis, if Bitcoin continues its downward path, the price range between $78,000 and $80,000 should be closely observed. Maintaining this range would indicate a possible reversal and the resumption of bullish momentum. Conversely, failing to uphold support could lead to further declines, with subsequent major support levels at approximately $71,535 and $60,590.
Other market analysts echo similar sentiments. Crypto VIP Signal on X has forecasted a potential decline towards the $72,000 – $74,000 support zone if Bitcoin cannot sustain the CME gap price threshold. The analyst emphasizes that this gap range represents BTC’s final opportunity for a price rebound as market sentiment continues to appear bearish.
BTC Reaches Oversold Levels For The First Time Since 2024
Alongside the newly opened CME gap, Bitcoin has entered oversold territory for the first time since August 2024. This indicates that the Bitcoin price has fallen sharply and is believed to be trading below its intrinsic value, potentially hinting at an impending rebound.
Given the current state of market decline, this new revelation is viewed as a positive indicator. Crypto analyst Ali Martinez reported that in 2024, when Bitcoin similarly hit oversold levels, it resulted in a staggering 33% price increase. This suggests that if historical trends hold true, BTC could also embark on a significant upward price rally.
