Crypto Analyst Warns Bitcoin Price May Plummet to $48,000 if Key Support Level Fails

A prominent analyst in the crypto space is outlining a potential scenario in which Bitcoin (BTC) could experience a drop below the $50,000 mark. In a recent analysis session, crypto trader Michaël van de Poppe shared with his substantial following on the social media platform X that Bitcoin might plummet to $48,000 if its current support level falters due to adverse Consumer Price Index (CPI) data.

Conversely, van de Poppe also highlights the possibility of Bitcoin surging to new all-time highs if it manages to break through resistance levels. He emphasizes the critical juncture for Bitcoin’s trajectory, stating, “The question for Bitcoin is which side it will take. Primarily above $56,000, the first resistance is $60,000-$61,000. If that breaks, we’ll be next to the ATH (all-time high) and you can buy the dip if you’re a trader. On the other hand, if CPI comes out in a bad manner, breaking $56,000 targets $48,000.”

The Consumer Price Index serves as a gauge for measuring the inflation of goods and services by tracking the average price changes over time, excluding food and gasoline. According to the latest report, there was a 0.2% increase in July following a 0.1% decline in June.

Van de Poppe further suggests that Bitcoin’s price action on the day of the CPI release could significantly impact its future trajectory. He notes, “Today is a big day, it’s CPI day. Bitcoin remains constant and today is deciding the trend. If we break through $61,000-$61,000, then the path toward a new all-time high is open.”

At the time of writing, Bitcoin is trading at $59,475, marking a 3% decrease over the past 24 hours. It appears that the immediate price movements of Bitcoin will be influenced by the outcome of the CPI data and its ability to breach key resistance levels.

It is essential for investors and traders to closely monitor these developments as they could signal potential shifts in the cryptocurrency market. The future price trajectory of Bitcoin remains uncertain, hinging on various factors such as market sentiment, technical indicators, and macroeconomic data. As the crypto market continues to evolve, staying informed about key developments like the CPI data release is crucial for making well-informed investment decisions.