The Bitcoin price continues to trade sideways, with uncertainties on the macro side leaving investors undecided about their next move. Crypto analyst Michael van de Poppe has shared insights into Bitcoin’s price trajectory, suggesting the possibility of the crypto dropping to as low as $48,000. Van de Poppe highlighted that Bitcoin could break below $56,000 and drop to the $48,000 price target if the Consumer Price Index (CPI) inflation data comes out unfavorably. Meanwhile, he noted that with Bitcoin currently above $56,000, the first resistance it needs to break is between $60,000 and $61,000. He also mentioned that a breakout could potentially lead Bitcoin to its all-time high (ATH) at $73,000.
Analyzing the CPI Inflation Data
The recent CPI inflation data, released on August 14, showed a 0.2% monthly increase in July and rose at an annual rate of 2.9%, meeting expectations. This data was viewed as neutral for the market, with Bitcoin remaining stable post-announcement. However, the positive takeaway was that the data indicated a slowing inflation rate and the possibility of an interest rate cut in September. Despite the CPI data not being negative, Van de Poppe’s forecast of Bitcoin dropping to $48,000 still stands, given the recent bearish trend in its price action. Alex Kuptsikevich from FxPro also suggested that Bitcoin is more likely to see a $5,000 drop rather than a rise by the same amount, potentially pushing it below the $56,000 resistance level.
Expert Views on Price Movement
Crypto analyst Altcoin Sherpa added to the discussion by stating that Bitcoin might fall into the $40,000 range if it fails to break above its current price level. He emphasized that a successful breakout could propel Bitcoin to $70,000. On a more optimistic note, crypto analyst Mikybull Crypto predicted a “strong and massive rally” on the horizon for Bitcoin. He mentioned that the global liquidity index breaking out of a 2-year resistance is a positive sign, highlighting the strong correlation between Bitcoin’s price and the global liquidity index.
With conflicting predictions and uncertainties surrounding macroeconomic factors, the future of Bitcoin’s price remains uncertain. Traders and investors are closely monitoring key levels and data releases to gauge the direction of the market. As the crypto market continues to be influenced by various external factors, staying informed and being prepared for potential price swings is essential for navigating the volatile landscape of cryptocurrency trading.
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