Bitcoin News Today: Bitcoin Faces 3.7% Potential Drop to Fill CME Gap as XRP Drives Toward $2.65

Bitcoin faces a potential correction as technical indicators highlight a key CME futures gap between $114,440 and $115,555. With BTC currently trading at approximately $118,950, a 3.7% drop would align the price with this historical gap, a common feature in futures markets where unaddressed price disparities often draw subsequent movement [1]. The 50-day moving average has converged with the upper edge of the gap, reinforcing its significance as a resistance zone [1]. Recent price action shows BTC failing to break above $120,000 and consolidating within a narrow channel, amplifying the likelihood of a downward retracement [1]. Analysts warn that such a move could trigger a 10–15% correction across altcoins, as leveraged positions unwind and market sentiment shifts [1].

XRP, already down 3.8% over the past week, remains vulnerable as Bitcoin nears critical technical levels. The asset trades just above its $3.03 support, with a tightening daily range between $3.02 and $3.48. Should BTC fill the CME gap, XRP may face further downward pressure, potentially testing the $2.65 level—a threshold cited as pivotal for its near-term trajectory [1]. This scenario underscores the interconnectedness of crypto markets, where Bitcoin's movements often dictate broader altcoin volatility.

The risk of a cascade effect is heightened by overlapping technical conditions. Bitcoin's consolidation below $119,000 and its proximity to the CME gap create a high-probability environment for a sharp correction. If the gap fills swiftly, altcoins could experience rapid declines, mirroring BTC’s retracement. Traders are advised to monitor Bitcoin’s interaction with the $114,440–$115,555 range, as the speed and depth of the drop will determine the severity of cross-market impacts [1].

Market observers emphasize that while the gap-fill scenario is speculative, the structural setup reflects well-established technical patterns. The convergence of support/resistance zones and recent price failures suggest a heightened risk of a short-term bearish reversal. For XRP, the $3.03 level serves as a last line of defense; a break below this could accelerate its decline toward $2.65, offering a potential entry point for bullish participants if the broader market stabilizes [1].

Source: [1] [Bitcoin Poised to Drop Below $116K to Fill CME Gap as XRP Slides Toward $2.65] [https://cryptonewsland.com/bitcoin-poised-to-drop-below-116k-to-fill-cme-gap-as-xrp-slides-toward-2-65/]