Bitcoin price dip may retest $55K before next leg up

Bitcoin (BTC) price dipped below a key trendline as analysts are eying a potential correction below $55,000 before BTC can rebound.

BTC price below key post-halving trendline

Bitcoin's price fell below a key growth trajectory line based on previous BTC halving cycles.

Recovering above this trend line, which is around $63,000, could put Bitcoin back on track to new highs, according to crypto research platform Econometrics, which wrote in an Aug. 12 X post:

“Bitcoin has dipped below its historical post-halving growth trajectory range. If it returns to this range before year-end, we're looking at a high likelihood of a six-figure value for one BTC.”

Provided that Bitcoin would follow the same trajectory we’ve seen during previous halving cycles, BTC could reach over $140,000 during the cycle top in 2025.

Will Bitcoin revisit $55K before more upside?

Bitcoin price could still correct below $55,000, based on the upcoming release of the Consumer Price Index on Aug. 14.

A higher-than-expected reading could lead to another correction, according to pseudonymous trader Crypto Bullet, who wrote in an Aug. 12 X post:

“What a monster bullish weekly candle! Long wick, green body. Strong recovery… While I think it’s possible to test $53-55k one last time if CPI comes in hot on Wednesday, I can’t be bearish here.”

However, Bitcoin miner reserves fell to 1.8 million BTC, which is lower than miner reserves at the beginning of March, when Bitcoin hit its all-time high, noted verified CryptoQuant author Binhdangg, in an Aug. 12 X post.

Decreasing miner reserves means less upcoming Bitcoin sell-pressure since miners rely on selling Bitcoin for operations costs.

Yet, Bitcoin needs a confirmation above $60,600 for more upward momentum, according to popular crypto analyst Rekt Capital.

The analyst wrote in an Aug. 10 X post:

“Bitcoin is doing all the right things to confirming $60,600 as support so as to position price for a revisit of $65,000+ over time.”