Bitcoin on the Cusp of a Breakout: Analyst Predicts CPI Impact

• The US Bureau of Labor Statistics will release its CPI data later today.
• Michael van de Poppe expects Bitcoin momentum after the CPI release.
• BTC could rally above $60K or drop to $49K, depending on the CPI outcome.

The US Bureau of Labor Statistics will release its Consumer Price Index (CPI) data later today. Cryptocurrency analyst Michael van de Poppe expects the upcoming figures to significantly affect crypto prices. In a recent post on X, the analyst noted that Bitcoin is currently following a path that could lead to a massive surge after the CPI figures are released.

While Bitcoin has pulled back slightly this morning, Van de Poppe views this as a normal correction ahead of the event. He hopes the price holds around $55,000 to $56,000 until the CPI data is unveiled.

CPI: A Key Economic Indicator

For context, the CPI measures the monthly change in prices paid by U.S. consumers for a basket of goods and services. Investors use it to gauge inflation or deflation in the economy, which can significantly influence their investment decisions.

Read also: August Economic Outlook: CPI, PPI, FOMC, Jackson Hole

Analysts forecasted today’s upcoming CPI figures to remain unchanged from last month’s 0.2% reported figure. That stands for the Core CPI m/m and the CPI m/m. Meanwhile, the CPI y/y forecast for today is 2.5%, 0.4 points lower than last month’s figure of 2.9%.

Possible Scenarios After CPI Release

Van de Poppe expects BTC to rally after the CPI release, but he acknowledges that a different outcome could trigger a deeper decline for the leading cryptocurrency. His prediction suggests BTC could bounce back and reclaim the $60,000 level following today’s event. Conversely, a further pullback could send the price down to $53,000, potentially even lower towards $49,000.

Read also: Bitcoin Bounces Back 5%, Signaling Potential Market Reversal

Bitcoin traded for $56,548 at the time of writing after retracing 2.88% from yesterday’s rally, according to data from TradingView. The pioneer cryptocurrency maintained a 7.78% profit this week after a two-week decline that saw BTC lose nearly 20% of its value.