After the latest US inflation report (CPI), Bitcoin briefly rallied to almost $98,000, giving investors a quick burst of hope. But that joy was short-lived; the price quickly started falling. Experts are now worried it could drop even further.
Bitcoin Under Pressure
Market analyst Negentropic from Glassnode noticed Bitcoin’s price is struggling after the CPI announcement. The report was worse than expected, causing a lot of volatility. Bitcoin briefly grabbed some liquidity around $94,000, peaking near $98,000, but it’s since fallen back to around $96,000. With weaker network activity and liquidity, the short-term outlook isn’t great. Negentropic thinks Bitcoin could easily fall to $92,000 if this negative trend continues.
Another Expert’s Take
Analyst Daan Crypto Trades also looked at Bitcoin’s recent price action. He points out that most of the liquidity Bitcoin gained was at shorter timeframes. There’s still a lot of untapped liquidity at higher price levels. If Bitcoin can reverse its current downward trend, it could trigger a price increase. However, the $90,000 level is a critical support area; a break below this could trigger significant losses for investors holding long positions. This level has been a bounce-back point in the past.
Shifting Market Dynamics
Analyst Axel Adler Jr. from CryptoQuant suggests focusing on the change in profits rather than just the losses. He notes that the market took two months to build momentum during a previous consolidation phase near $70,000. This time, things are different, largely due to news about Donald Trump and the potential for Bitcoin to be adopted as a strategic reserve asset. Adler believes this could speed up the development of a new trend much faster than in previous market cycles./p>
