Leading cryptocurrency Bitcoin is losing the $20,000 support level.
Analysts are predicting a decline for Bitcoin and other assets, which they believe will be affected by the June consumer price index (CPI) inflation report.
This bearish sentiment caused the cryptocurrency market to turn red again.
As the situation changes hourly, analyst Michael van de Poppe has set new key levels for Bitcoin, which has failed to hold the support zone above $20,000.
According to Van de Poppe, these new levels are $20,300, or the area between $19,300 and $19,500.
Another analyst, Ali Martinez, said the following regarding Bitcoin’s future price movements:
“Bitcoin stands somewhere between 19,150 and 19,700. If this support holds, it may face stiff resistance at $20,900.
Possible Effects of Inflation
Van de Poppe had set levels differently before the inflation data report, which he believes will have a significant impact on Bitcoin price movements.
According to the analyst, everyone expects a deep crisis to occur because they believe that the CPI report will result in negative results. However, van de Poppe believes inflation data will “be less severe than we’ve seen, or at least will decline in the coming months and sit at a lower level than we expected.”
Wall Street investors also believe the asset’s value will be more likely to drop to $10,000 than to bounce back to $30,000.
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