Bitcoin (BTC) Price Could Face Retest of $20,000 and, according to a new analysis, the United States will fail in its plans for a “soft landing” on inflation.
In a YouTube update on February 5, Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, warned that the tide is about to turn for risk assets.
US is “probably” headed for recession: Van de Poppe
Amid confusion over how upcoming US macroeconomic data may affect market sentiment, Van de Poppe says that there are increasing chances that the rally seen in cryptocurrencies and stocks this year could turn bearish.
Bitcoin, for example, posted gains of 40% in January, but like others, he sees a disappointing February as a real possibility.
“I think that people should understand that there is no soft landing, that this downtrend in the markets is likely to continue“, he said about the long-term status quo.
USA, Van de Poppe continued, “likely to have” a recession due to the scope of the Fed’s rate hikes.
In case a dip starts, the potential target of the BTC/USD pair is between $20,000 and $21,000.
A lot depends on the result of the data from the Consumer Price Index (CPI) for January, which will be published on February 14. Should inflation slow down less than expected, or even if the downtrend is interrupted, the results could benefit the US dollar and stop the rally in risk assets.
The US dollar index (DXY)as Cointelegraph reported, it is currently in the process of consolidation after falling 13% since mid-2022when it marked twenty-year highs.
“In this case, next week the dollar will probably start to pick up, or the next with the CPI and PPIso that’s why it’s very important to keep an eye on this chart,” Van de Poppe added.
Bitcoin bears ‘stuck in the cash’
Meanwhile, others debated the potential for a BTC price pullback ahead of a less significant macroeconomic week.
A higher minimum would provide a better entry point for long positions.suggested popular Crypto trader Tony, arguing that the bear market was still in play.
“Even if this were the start of a bull market, and personally, I still believe that we’re not in it. You can still get a good safer entry on the higher and lower recoil“, said to his Twitter followers that day.
However, some well-known bullish voices were more active than ever, talking about cryptocurrency and market education, analysis and prediction tool IncomeSharks.
“People still seem to be confused as to why it’s been going up,” said 0 in a tweet on February 3.
The BTC/USD pair was trading around $23,400 at the time of writingaccording to data from Cointelegraph Markets Pro and TradingView, with about 15 hours to go before the weekly close in the United States.
“Remember that most of the bulls are still holding and not selling. The bears are stuck in the cash. Little by little, the bears are giving in and buying. The most stubborn ones keep selling and driving the price higher.”
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