Bitcoin (BTC) has recently experienced a massive surge, gaining more than 39% since Nov. 5 to reach an all-time high of $93,250 on Wednesday. However, the largest cryptocurrency by market cap has since corrected and is currently trading at around $88,800.
Market analyst Quinten Francois said this retracement could extend further and could see a drop below the $80,000 mark due to a large CME gap below that level.
Ahead of a 12% retracement?
CME gaps are price discrepancies on the Chicago Mercantile Exchange’s Bitcoin futures chart where the close of one trading day differs from the open of the next. These gaps typically appear after large price movements and are usually 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 can be healthy for BTC as it often liquidates long positions, setting the stage for future gains. Historical patterns suggest that these pullbacks can provide the necessary liquidity for further advances in the cryptocurrency.
However, if Bitcoin sees increased selling pressure at this level, additional support levels are identified at $72,000 and $69,000. The possibility of a break below these levels would take BTC back to prices prior to Donald Trump’s election victory on November 5, which many believe was the catalyst for the recent price surge.
Will Trump's Bitcoin Strategy Affect Future Price Trends?
During the presidential campaign, Trump continuously expressed his intention to support the growth of digital assets, positioning Bitcoin as a core element of his next administration’s economic policy.
One of Trump’s promises includes establishing Bitcoin as a strategic reserve asset for the United States.
Pro-cryptocurrency Senator Cynthia Lummis took this step to the Senate by introducing the Bitcoin Act, which seeks to increase the U.S. Bitcoin reserves to 1 million coins, which could reduce market supply and have a positive impact on BTC prices.
Francois also predicted a bear market for the wider cryptocurrency industry, predicting that it could occur between 2026 and 2027. This suggests that the next two years could witness a long-term bull market for Bitcoin and the entire digital asset ecosystem.
However, the expert warned that if the $78,000 CME gap is not filled before a significant price increase, it may need to be addressed in the subsequent bear market phase, suggesting further price volatility ahead.
