Bitcoin's price has dropped from around $80,500 to approximately $79,000 at the time of writing, sparking discussions among traders. Many are speculating whether the rally of $BTC is coming to an end, while others assert that the current consolidation near the $80,000 level indicates a healthy trading cycle.
Amid all this, an analyst dismissed concerns about a potential correction in the coming days, pointing to key levels to watch for the cryptocurrency going forward. Additionally, investors are also closely monitoring macroeconomic news this week, which could further influence Bitcoin's price in the future.
Analyst Remains Optimistic About Bitcoin's Price.
At the time of writing, the price of $BTC was fluctuating around the $79,033 mark, having declined from a 24-hour high of $80,530. Notably, last week, the cryptocurrency reached a local high of $82,262 before retreating again after stronger-than-expected U.S. employment data dampened market sentiment.
On the other hand, significant inflows into U.S. spot Bitcoin ETFs supported the recent rally, indicating growing institutional confidence in its price. However, despite the latest phase of consolidation, analyst Michael van de Poppe maintains an optimistic outlook on the long-term price trajectory of $BTC.
For context, in a recent post on X, the analyst stated that he does not expect any "deep" correction in the asset's price. Moreover, he spoke highly of the recent consolidation, stating that if $BTC falls below $74,000, it would present a buying opportunity for traders.
Nonetheless, it appears that Bitcoin's price may continue to decline from the current level, providing traders with an opportunity to buy on dips. Additionally, van de Poppe noted that if $BTC can successfully break through resistance at the $82,850 level, it could resume its upward trend.
What's Next for the Price of $BTC?
According to Michael van de Poppe, the resistance level at $82,850 is a critical threshold that could determine Bitcoin's price movement going forward. On the other hand, his chart suggests that a drop below the support levels of $75,545 or $73,674 could trigger a fall to $71,000 or around $70,000 subsequently.
Meanwhile, beyond technical levels, investors are also closely watching upcoming macroeconomic events to gain insight into the state of the economy. After the Federal Reserve earlier hinted at a tough policy stance to curb inflation, market analysts now anticipate the release of U.S. Consumer Price Index and Producer Price Index data this week.
If inflation exceeds expectations, as suggested by the U.S. employment data, it could compel the U.S. Federal Reserve to raise interest rates by 25 basis points. In such a case, it could significantly impact risk assets like Bitcoin and others.
Notably, prediction market data showed that the probability of a Fed rate hike in September is currently at 50%. Therefore, it also suggests that the current consolidation may be due to investor caution ahead of key macroeconomic events scheduled for this week.
Meanwhile, to track economic sentiment in real-time, many macro analysts are closely monitoring top cryptocurrency prediction markets that offer decentralized, collective opinion-based probability assessments.
