The Bitcoin price continues to trade sideways, as uncertainties on the macro side have made investors undecided about their next move. Crypto analyst Michael van de Poppe has provided insights into Bitcoin’s price trajectory and has raised the possibility of the crypto dropping to as low as $48,000. Van de Poppe mentioned in a recent post that Bitcoin could break below $56,000 and drop to a price target of $48,000 if the Consumer Price Index (CPI) inflation data comes out badly.
The recent CPI inflation data released on August 14 saw a 0.2% monthly increase in July and rose at an annual rate of 2.9%, meeting expectations. As such, it was neither considered bullish nor bearish for the market, as Bitcoin remained steady following the news. However, the positive is that the data showed inflation is slowing and that a potential interest rate cut in September is still on the table.
Despite the CPI data not coming out badly, Van de Poppe’s forecast of Bitcoin dropping to as low as $48,000 could still be on the cards, seeing as the flagship crypto’s price action has looked more bearish than bullish in recent times. Other experts in the field, such as Alex Kuptsikevich and Altcoin Sherpa, have also mentioned the possibility of Bitcoin dropping to lower levels if certain resistance points are not broken. Kuptsikevich even suggested that a $5,000 drop in Bitcoin is more likely than a $5,000 rise.
Amid Bitcoin’s price uncertainty, crypto analyst Mikybull Crypto has assured 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 a 2-year resistance, and noted that Bitcoin’s correlation with the global liquidity index is quite strong.
While there are various opinions and predictions regarding Bitcoin’s price movements in the near future, it is essential for investors to stay informed and make educated decisions based on a comprehensive analysis of the market trends and expert insights. The crypto market remains highly volatile and subject to external factors, so it is crucial to approach investments with caution and diligence.
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