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 on X (formerly Twitter) 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. Meanwhile, with Bitcoin currently above $56,000, the first resistance it needs to break is between $60,000 and $61,000. A breakout could bring Bitcoin next to its current all-time high (ATH) at $73,000.
Inflation Data and Market Response
The 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. It was neither considered bullish nor bearish for the market, as Bitcoin remained steady following the news. However, the data showed inflation is slowing and that a potential interest rate cut in September is still on the table. Despite the data not being as bad as expected, the forecast of Bitcoin dropping to as low as $48,000 could still be on the cards, as the flagship crypto’s price action has looked more bearish than bullish in recent times.
Alex Kuptsikevich, senior market analyst at FxPro, recently mentioned that Bitcoin is more likely to fall by $5,000 rather than rise by the same amount. A $5,000 drop in Bitcoin would put it below the $56,000 resistance level, putting $48,000 in sight. Crypto analyst Altcoin Sherpa also mentioned that Bitcoin will likely drop 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.
Amid Bitcoin’s price uncertainty, crypto analyst Mikybull Crypto has assured 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.
Overall, the future trajectory of Bitcoin’s price remains uncertain, with experts having varying opinions on whether it will drop to $48,000 or rally to new highs. Investors should proceed with caution and closely monitor market developments to make informed decisions.
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