- Bitcoin’s rapid $13K drop has analysts split between a confirmed bottom at $94K or a deeper fall toward $74K.
- A CME gap at $92K suggests BTC may need one more retracement before any major recovery.
- Wyckoff signals and record-low exchange reserves hint that a bullish reversal could be brewing soon.
Bitcoin’s sharp $13,000 slide in just three days has shaken the market, pushing the asset toward multi-month lows and fueling a heated debate among analysts. Some believe BTC may have already bottomed near $94,000, arguing the sell-off has exhausted downward momentum. Others remain cautious, warning that Bitcoin could still revisit lower levels if critical market gaps and patterns continue to play out. The sudden volatility has left traders torn between preparing for a deeper correction and positioning for an early reversal.
CME Gap Points to Possible Retracement
A key voice in the bearish camp is Merlijn The Trader, who highlighted a CME gap around $92,000—a level Bitcoin has not yet filled. He noted that CME futures gaps tend to get revisited, sometimes even months later, increasing the likelihood of another dip before a recovery. This potential revisit places the mid-$90K region at risk and keeps open the possibility of a sweep toward the $74K level if selling pressure intensifies. For traders watching technical structure, this gap remains one of the strongest arguments for another leg down.
Wyckoff Pattern Signals Shakeout Phase Ending
At the same time, Merlijn’s analysis drew attention to the Wyckoff market cycle, suggesting Bitcoin has entered “Phase E,” the stage where smart money accumulates while retail panics. This pattern typically follows a major shakeout and can precede a stronger upside reversal. Supporting this narrative is the continued drop in Bitcoin exchange reserves, which have now reached a new all-time low. Lower reserves often signal reduced sell-side liquidity, creating conditions where even modest demand can spark sharp upward movements.
Market Braces for Major Move Ahead
Despite the intense volatility, long-term confidence in Bitcoin remains high. While disagreements persist over whether $94K marks the true bottom, both bullish and bearish analysts acknowledge that BTC is approaching an inflection zone. With supply hitting historic lows and technical signals flashing mixed messages, traders are preparing for a potentially explosive move in either direction. As the market awaits clarity, Bitcoin’s next major trend may depend on how it interacts with the mid-$90K range in the days ahead.
