The Bitcoin price has been trading sideways in recent times, with investors feeling uncertain about their next move. Crypto analyst Michael van de Poppe has shared insights into Bitcoin’s potential price trajectory, mentioning the possibility of the crypto dropping to as low as $48,000 if certain macroeconomic factors come into play.
Van de Poppe highlighted that Bitcoin could break below $56,000 and reach a price target of $48,000 if the Consumer Price Index (CPI) inflation data turns out to be unfavorable. He also mentioned that Bitcoin currently being above $56,000 would need to break the first resistance level between $60,000 and $61,000 for a potential rally towards the current all-time high (ATH) at $73,000.
The recent CPI inflation data released showed a 0.2% monthly increase in July and rose at an annual rate of 2.9%, meeting expectations. Despite the data being neither bullish nor bearish, Bitcoin remained steady after the news. However, the positive aspect was that the data indicated a slowdown in inflation, potentially paving the way for an interest rate cut in September.
Despite the CPI data not being negative, analysts like Alex Kuptsikevich and Altcoin Sherpa have suggested the possibility of Bitcoin dropping to lower levels if certain resistance points are not broken. Kuptsikevich mentioned that Bitcoin is more likely to fall by $5,000, potentially putting it below the $56,000 resistance level. Altcoin Sherpa also added that a failure to break above the current price level could push Bitcoin towards $40,000, while a successful breakout could lead to a rally towards $70,000.
Crypto analyst Mikybull Crypto has provided a glimmer of hope amidst the uncertainties surrounding Bitcoin’s price trajectory. He emphasized the potential for a “strong and massive rally” for the flagship crypto, pointing to the breakout of the global liquidity index from a 2-year resistance. The correlation between Bitcoin and the global liquidity index was highlighted as a strong indicator for potential price movements.
Overall, the uncertainties surrounding Bitcoin’s price trajectory and the potential impact of macroeconomic data have left investors on edge. While analysts provide varying forecasts and predictions, the market remains in a state of indecisiveness, waiting for key factors to determine the next direction for Bitcoin’s price movements.
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