“Technically, bitcoin appears to follow a double top formation, and the support level is being tested. This chart pattern should be our base case unless it becomes invalidated. This formation could easily lead to a drop to $50,000, if not $45,000,” said Markus Thielen, founder of 10x Research.

“Yes, the U.S. elections and the Consumer Price Index (CPI) should be bullish later this year, but we can still have a steeper correction,” Thielen added.

The Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) price index, is expected to show the slowest monthly advance in the core figure in over three years. This would strengthen the case for renewed Fed rate cuts starting in September, potentially supporting risk assets, including bitcoin.