The Bitcoin price has been trading sideways recently, with investors uncertain about their next move due to macroeconomic uncertainties. Crypto analyst Michael van de Poppe has provided insights into Bitcoin’s price trajectory, suggesting that the cryptocurrency could potentially drop to as low as $48,000 if certain factors come into play.
Van de Poppe mentioned in a post that if the Consumer Price Index (CPI) inflation data turns out badly, Bitcoin could break below $56,000 and drop to $48,000. However, he also noted that with Bitcoin currently above $56,000, the first resistance level it needs to break is between $60,000 and $61,000. A successful breakout could lead Bitcoin to its current all-time high (ATH) at $73,000.
The 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. While this news was not considered bullish or bearish for the market, Bitcoin remained steady. The positive aspect of the data is that it indicated inflation is slowing and a potential interest rate cut in September is still possible.
Despite the relatively neutral CPI data, analysts like Alex Kuptsikevich and Altcoin Sherpa have expressed bearish sentiments. Kuptsikevich suggested that Bitcoin is more likely to fall by $5,000 than rise by the same amount, potentially putting it below $56,000 and closer to Van de Poppe’s predicted target of $48,000. Altcoin Sherpa also forecasted a drop to the $40,000 range if Bitcoin fails to break its current price level.
In contrast to the bearish forecasts, crypto analyst Mikybull Crypto has predicted a “strong and massive rally” for Bitcoin. He pointed to the global liquidity index breaking out of a 2-year resistance and emphasized the strong correlation between Bitcoin’s price and the index.
The Bitcoin price trajectory remains uncertain, with conflicting opinions from analysts on its potential movements. While some foresee a drop below $48,000, others predict a rally towards new highs. Investors must carefully monitor the market and consider various factors before making any decisions regarding their Bitcoin holdings.