2 Reasons Why Bitcoin (BTC) Could Bleed Even More in the Short Term

Earlier this week, the leading cryptocurrency plunged to roughly $73,500, its lowest level since August. Bulls have reclaimed some of the lost ground, but BTC still trades near $74,100, down about 10% over the past month. Despite the minor rebound, bears remain in charge, while two key factors suggest that the asset may post additional losses in the near term. Here’s why traders and investors should tread carefully. Inflation Data and More The main economic event scheduled for today (November 10) is the US CPI data, which will show the inflation rate for October in the world’s biggest economy. It is important because it could influence the Federal Reserve’s future monetary policy decisions, including the path of interest rates. X user Ted said overall expectations are for a 0.3% month-over-month increase. More importantly, the analyst warned that the previous CPI report preceded a 9% drop in BTC’s price over the following fortnight. His post fueled a heated discussion, with numerous members sharing their thoughts. X user Abhi | AP Collective, for instance, claimed that a 0.3% increase is mostly priced in and that a potential 0.4% spike could trigger a price pullback. The actions of one mysterious whale can also be classified as a bearish factor. Max Crypto revealed that the large investor, who has previously made over $4 million in profits, has opened a massive $94 million short position on BTC with 13x leverage. This doesn’t guarantee that the asset’s valuation will head south in the short term, but some crypto enthusiasts believe whales may possess information about upcoming developments that could affect the asset’s price. Consequently, such moves can spark panic across the community, leading others to sell their holdings and intensifying the downside pressure. The Bigger Picture While the CPI report will likely influence BTC’s near-term trajectory, some analysts are already looking beyond the immediate volatility and trying to pinpoint the start of the next major bull market. X user Wealthmanager highlighted that the asset is testing trendline support for the third time, saying the current structure closely resembles early 2023, or just before a major rally began. Ali Martinez shared a similar stance, anticipating the recent drop to be followed by a significant upswing. Those willing to explore additional BTC price predictions can take a look at our dedicated article here. The post 2 Reasons Why Bitcoin (BTC) Could Bleed Even More in the Short Term appeared first on CryptoPotato.