The Bitcoin price continues to trade sideways as uncertainties on the macro side have left investors undecided on their next move. Crypto analyst Michael van de Poppe has provided insight into Bitcoin’s price trajectory and raised the possibility of the cryptocurrency falling to $48,000.
What could cause Bitcoin to drop to $48,000?
Van de Poppe mentioned in an X (formerly Twitter) after that Bitcoin could break below $56,000 and fall to a price target of $48,000 if inflation data from the Consumer Price Index (CPI) comes out poorly. Meanwhile he added that with Bitcoin is currently above $56,000the first resistance it has to break is between $60,000 and $61,000. He claimed that a breakout would bring Bitcoin back to its current price all-time high (ATH) for $73,000.
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The CPI inflation data The figures published on August 14 showed a monthly increase of 0.2% in July and rose 2.9% year-on-year, meeting expectations. As such, it was considered neither bullish nor bearish for the market as Bitcoin remained stable following the news. On the plus side, the data shows that inflation is slowing possible interest rate reduction in September is still on the table.
Despite the CPI data not being bad, Van de Poppe’s prediction of Bitcoin falling to a low of $48,000 could still be on track as the flagship crypto’s price action has looked more bearish than bullish lately. Alex Kuptsikevich, senior market analyst at FxPro, recently said that Bitcoin is more likely to fall by $5,000 rather than rise by the same amount.
A $5,000 drop in Bitcoin would take it below the $56,000 resistance level that Van de Poppe highlighted, putting $48,000 in sight. Crypto analyst Altcoin Sherpa Also named that Bitcoin is likely to fall into the $40,000 range if it fails to break above its current price level. He added that a successful breakout will take Bitcoin to $70,000.
There is a strong rally coming for BTC
Amid the price of Bitcointhat seems indecisive about its next move, crypto analyst Mikybull Crypto has insured us that a “strong and massive rally” is looming for the flagship crypto. He made this statement while revealing that the global liquidity index has broken out of the 2-year resistance. He noted that Bitcoin’s correlation with the global liquidity index is quite strong.
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The analyst who had done that previously claimed that the Bitcoin bottom was also recently located declared that the flagship crypto’s next target as it begins its wave five expansion would be $95,000 than $142,000.
At the time of writing, Bitcoin is trading around $58,400, down over 4% in the past 24 hours. facts from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
