Bitcoin Expert Predicts Correction to $78,000 CME Gap: Is a Bear Market on the Horizon?

Bitcoin (BTC) has been on a bullish rampage, surging over 39% since November 5th to reach an unprecedented high of $93,250 this Wednesday. However, this rally has recently shown signs of fatigue, with Bitcoin pulling back to around $88,800. According to seasoned market analyst Quinten Francois, this dip might just be the start, as a correction down to a critical CME gap around $78,000 could be looming on the horizon.

Understanding the CME Gap and What It Means for Bitcoin

The CME gap refers to a price discrepancy that appears on the Chicago Mercantile Exchange (CME) Bitcoin futures chart. These gaps typically occur when trading halts over the weekend or between sessions, resulting in a mismatch between the closing price one day and the opening price the next. Historically, these gaps have a tendency to “fill,” meaning Bitcoin often retraces to these levels as the market balances out.

Francois has identified a prominent CME gap near the $78,000 mark. If Bitcoin were to fill this gap, it would entail a retracement of approximately 12% from its current level. Despite the seeming downturn, a correction of this magnitude could actually be healthy, as it would help eliminate overly leveraged long positions and provide the liquidity necessary for future rallies.

What a 12% Correction Could Mean

Should Bitcoin undergo a 12% correction to fill this CME gap, it could prompt a cycle of liquidations, temporarily shaking out weaker hands and paving the way for further gains. Historically, such corrections have acted as launching pads for subsequent price increases. If the selling pressure intensifies, however, BTC may need to rely on additional support levels at $72,000 and $69,000.

These levels are notable because they would bring Bitcoin back to the prices seen just before Donald Trump’s election victory on November 5th, which many believe played a key role in Bitcoin’s recent surge.

Could Trump’s Bitcoin Strategy Shape Future Price Trends?

Donald Trump’s surprising support for digital assets during his campaign has sparked interest and optimism within the crypto community. By prioritizing Bitcoin as a potential pillar of his economic strategy, Trump has drawn significant attention to the digital currency’s role in the U.S. financial ecosystem.

One of his most striking campaign promises includes establishing Bitcoin as a strategic reserve asset for the United States. This initiative has gained traction, particularly with pro-crypto Senator Cynthia Lummis championing the cause. She recently introduced the Bitcoin Act, which proposes to increase U.S. Bitcoin reserves to a target of 1 million coins. If passed, this could limit supply, potentially driving up Bitcoin’s price in the long run.

The Bigger Picture: Is a Bear Market Approaching?

While Francois remains cautiously optimistic in the near term, he has raised concerns about a looming bear market. According to his analysis, a broader cryptocurrency bear market could unfold between 2026 and 2027, suggesting that the next two years might be a prolonged bull cycle for Bitcoin and the wider digital asset landscape.

However, Francois issued a word of caution: if the $78,000 CME gap isn’t filled in the near term, it could haunt the market in the next bear phase. This would imply potential volatility ahead, with Bitcoin possibly needing to revisit these levels as part of a cyclical correction.

Conclusion: Navigating the Road Ahead for Bitcoin Investors

Bitcoin’s meteoric rise has captivated investors and spurred excitement around its potential as both a strategic reserve and a digital asset. Yet, as with any volatile asset, retracements are a natural part of its journey. With the $78,000 CME gap in focus, investors should brace for potential short-term corrections while keeping an eye on the broader trend.

The next few years could still see significant gains for Bitcoin if Francois’s forecast of a long bull cycle holds true. However, as 2026-2027 approaches, market participants may need to prepare for the possibility of a crypto winter. For now, Bitcoin remains in the spotlight, and investors are advised to stay informed and ready to navigate its unpredictable terrain.