Significant data and developments continue to emerge in the cryptocurrency market. Analysts are observing a potential correction in Bitcoin‘s price, predicting it could fall below $55,000 before any recovery. The price recently dipped below a major growth trajectory line, an important marker compared to previous Bitcoin halving cycles.
Critical Phase for Bitcoin
According to Ecoinometrics, a crypto research platform, if Bitcoin can recover above the $63,000 mark, it may set the stage for new highs. The team expressed confidence in an X post on August 12, suggesting that returning to the historical post-halving growth range before year-end could significantly boost Bitcoin’s value, potentially reaching six figures.
Historical patterns indicate that if Bitcoin follows the same path as in previous halving cycles, it could surpass $140,000 at the peak of the 2025 cycle. However, analysts note that Bitcoin’s price might dip below $55,000 depending on the upcoming Consumer Price Index (CPI) release on August 14.
How Could CPI Impact Bitcoin?
Crypto investor and analyst Crypto Bullet commented on August 12 that a higher-than-expected CPI reading could trigger another correction. He observed a strong recovery in Bitcoin’s recent weekly performance but cautioned against bearish sentiments if CPI data exceeds expectations.
Key Insights for Investors
Valuable Inferences:
– Monitoring the CPI release on August 14 is crucial for understanding short-term Bitcoin price movements.
– Recovery above $63,000 could be a strong bullish indicator for Bitcoin.
– Declining Bitcoin miner reserves may reduce selling pressure, potentially stabilizing the market.
– Analysts suggest that confirmation above $60,600 is essential for sustaining upward momentum.
CryptoQuant writer Binhdangg pointed out that Bitcoin miner reserves have decreased to 1.8 million, lower than at the beginning of March when Bitcoin was at its all-time high. Decreasing reserves imply reduced selling pressure, as miners depend on selling Bitcoin to cover operational expenses.
Popular analyst Rekt Capital believes Bitcoin needs to confirm support above $60,600 for sustained upward momentum, as expressed in an X post on August 10. This could position Bitcoin for a revisit above $65,000 over time.
