A widely followed crypto analyst is laying out a scenario where Bitcoin (BTC) could dip back down below $50,000.
In a new strategy session, crypto trader Michaël van de Poppe tells his 723,000 followers on the social media platform X that the crypto king could crash to $48,000 if its current support level falls apart due to a negative Consumer Price Index (CPI).
However, he also notes it’s possible for BTC to go the other way and hit fresh all-time highs if it breaks above resistance.
“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 CPI measures the inflation of goods and services based on the average change over time in the prices paid by consumers, excluding food and gasoline. The most recent report found that it increased by 0.2% in July after falling by 0.1% in June.
The trader goes on to say that BTC’s price action today could decide its trend going forward.
“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.”
Bitcoin is trading for $59,475 at time of writing, about a 3% decrease in the last 24 hours.