Bitcoin Drops to $86,000 as Expert Warns of 10% Dip Ahead of CPI Data
Analyst Michaël van de Poppe anticipates a 10% Bitcoin retracement before the release of CPI data, targeting a range of $75,669$81,193.Bitcoin's remarkable surge this week has continued, with the cryptocurrency currently trading around $86,000. This follows a significant breakthrough last Tuesday when Bitcoin overcame resistance at $68,000 amid the U.S. election results. With Donald Trump set to assume the presidency, Bitcoins price began to rise rapidly.The rally intensified during the early hours of the Asian trading session, propelling Bitcoin to an intraday high of $89,964. However, this peak sparked a bearish reaction, with sellers stepping in to prevent the cryptocurrency from maintaining levels above this milestone. At the time of reporting, Bitcoin had gone down to $86,386.10, though it still reflects a 5.30% gain over the past 24 hours and an impressive 25.69% increase over the past week.Warning for Further RetracementMichaël van de Poppe, the founder of MNConsultancy, observed that the market is gaining momentum but anticipates a retracement leading up to the release of the Consumer Price Index (CPI) data on November 13. He identified a "sweet spot" for entries, suggesting a 10% correction toward the CME gap before continuation. https://TWITTER.com/CryptoMichNL/status/1856256610466705567Van de Poppe's target range for this retracement lies between the 38.2% Fibonacci retracement level at $75,669.64 and the 61.8% level at $81,193.13.He also highlighted $66,729 as an "ideal area to hold" and pointed to $64,130.63 as a potential level where liquidity could be taken out, signaling areas where market participants might seek to fill orders before prices move higher.Overbought ConditionsTechnical indicators further suggest that Bitcoin may be entering overbought territory. The crypto trades above the upper Bollinger Band, typically indicating that the asset may be overbought or due for a consolidation or correction phase.
Text source: The Crypto Basic
