Bitcoin Price Correction Looms: Expert Predicts Dip to $78,000 CME Gap
Bitcoin’s Bull Run Faces Potential Correction: Expert Forecasts Dip to $78,000
Bitcoin (BTC) has been on a tear, skyrocketing over 39% since November 5th, reaching a new all-time high of $93,250 on Wednesday. However, the digital currency giant has since seen a pullback, currently trading around $88,800. Market analyst Quinten Francois predicts this retracement could continue, potentially dropping below the $80,000 mark due to a significant CME gap situated beneath this level.
A 12% Retracement on the Horizon?
CME gaps, referring to price discrepancies on the Chicago Mercantile Exchange Bitcoin futures chart, occur when the closing price of one trading day diverges from the opening price of the next. These gaps, often stemming from substantial price movements, tend to be filled as the market stabilizes. Francois has identified a CME gap at the $78,000 level, which, if filled in the coming days, would represent a retracement of just over 12% from current prices.
Such a correction could prove beneficial for BTC, as it often liquidates long positions, setting the stage for future upward movements. Historically, these pullbacks have provided the necessary liquidity for Bitcoin to advance further.
Potential Support Levels and a Look Back to Trump’s Election
However, if Bitcoin experiences increased selling pressure at this level, additional support levels exist at $72,000 and $69,000. A fall below these levels would bring BTC back to prices seen before Donald Trump’s election victory on November 5th, which many believe ignited the recent price surge.
Trump’s Bitcoin Strategy and its Impact
During his presidential campaign, Trump consistently voiced his support for the growth of digital assets, positioning Bitcoin as a key component of his next administration’s economic strategy. One of Trump’s promises included designating Bitcoin as a strategic reserve asset for the United States.
Pro-crypto Senator Cynthia Lummis has taken this initiative to the Senate by introducing the Bitcoin Act, aimed at increasing US Bitcoin reserves to 1 million coins, potentially decreasing market supply and positively impacting the BTC price.
A Bear Market Looms: Expert Predicts 2026-2027 Timeline
Francois has also forecasted a bear market for the broader cryptocurrency sector, predicting its arrival between 2026 and 2027. This suggests the next two years will likely witness an extended bull run for Bitcoin and the overall digital asset ecosystem.
However, the expert cautioned that if the $78,000 CME gap isn’t filled before a significant price rally, it may need to be addressed during the subsequent bear market phase, indicating further price fluctuations ahead.