Which Direction Will Bitcoin Price Move? U.S. Inflation Reports Could be Decisive!

• Bitcoin price experienced a temporary drop, falling over 7% to $40,200. This move led to the liquidation of approximately $200 million in positions.
• Michael van de Poppe, a popular analyst, provides insights into the next move for the token. According to him, BTC price will drop to $39,500 and then rise to $42,000.
• As the markets undergo a correction, bearish sentiments have become prevalent, causing the crowd to sell at the top.

Bitcoin price continues to trade in a critical range: Will BTC price fall below $40,000? Current predictions!

Will Bitcoin Price Continue to Correct?

Bulls seem to have lost the game as Bitcoin price is on the verge of dropping to nearly $40,000. Moreover, a significant rally is expected to encounter substantial volatility as the market awaits U.S. CPI and Fed Chairman Jerome Powell’s end-of-2023 speech. Meanwhile, bulls seem largely exhausted with the price struggling to recover significantly after a significant retracement. Therefore, concerns arise about whether BTC price will reach the highs of the year.

Bitcoin price experienced a temporary drop, falling over 7% to $40,200. This move led to the liquidation of approximately $200 million in positions – $197 million long and $8.23 million short. This drop also resulted in a $1.2 billion decrease in the open interest, currently standing at $17.50 billion. Therefore, the question now is whether Bitcoin will continue its uptrend or face the impact of the currently dominant bearish market.

Michael van de Poppe, a popular analyst, provides insights into the next move for the token. According to him, BTC price will drop to $39,500 and then rise to $42,000. The analyst believes that, with a slight decrease in the momentum of the price, it could fall below $40,000 at any moment. However, a recovery may occur if bulls manage to hold the price above the support range of $36,500 to $38,000. After this correction, the price could return to the range of $39,500 to $40,000 and then potentially move back to the temporary resistance at $42,000.

Eyes on U.S. Inflation Data

Now, all eyes are on the upcoming U.S. CPI rates that are expected to cause fluctuations in the markets. As bearish sentiments prevail during the market correction, the crowd’s selling at the top has intensified. If negative effects are observed after the announcement of the new CPI rates, Bitcoin price could finally test the critical support level of $37,800. If the token cannot hold here, a sharp drop to $32,000 may occur; otherwise, a recovery leading to a price rise to $48,000 could begin.