Bitcoin Could Drop Even Further Before Rebounding, According to Top Analyst

A well-known crypto analyst suggests that Bitcoin (BTC) may face further declines before making a significant recovery.

Michaël van de Poppe believes that BTC could potentially drop to $54,000 before rebounding.

The lower timeframe picture on #Bitcoin is highly boring.

Took the liquidity above $58.2K and dropped back.

Most likely, we’ll take the liquidity lower at $54K and then reverse back up, but it’s event week.

Crucial levels: $56K / $58.2K.

Either will provide direction. pic.twitter.com/raGRnzdR6Z

— Michaël van de Poppe (@CryptoMichNL) September 5, 2024

He explains that Bitcoin’s short-term outlook appears uneventful, as the cryptocurrency tested the $58,200 mark before retreating. Van de Poppe predicts that a dip to $54,000 could occur before a rebound, though the direction of the market remains uncertain due to significant events happening this week. He identifies key levels to watch at $56,000 and $58,200, which he believes will determine Bitcoin’s next move.

Van de Poppe also highlights several macroeconomic factors that could soon fuel a Bitcoin rally. He notes that job openings are at a three-year low and ADP employment data is at its worst in over three years, indicating a weakening economy.

This economic downturn has led to a rise in gold prices, and Van de Poppe believes that the Federal Reserve may need to cut interest rates by 50 basis points to stay ahead of these developments. He suggests that this could boost quarterly earnings and ultimately drive Bitcoin higher.

Furthermore, the analyst warns that Bitcoin might drop below the $50,000 range before gaining momentum. He points out that the markets are currently in a correction phase, and while liquidity has been tapped, it hasn’t triggered the expected upward bounce.

The markets are correcting.

Liquidity has been taken, but it doesn’t provide the actual bounce upward we wanted.

If that’s the case, then $53K is likely, or even $49K, before the reversal happens for #Bitcoin.

It’s still early September. pic.twitter.com/B5tesOtkDM

— Michaël van de Poppe (@CryptoMichNL) September 4, 2024

If this trend continues, Van de Poppe predicts that Bitcoin could fall to $53,000, or even $49,000, before a recovery takes place. He emphasizes that it’s still early in September, so there could be further market fluctuations ahead.