Bitcoin Price may Fall below 20K-Trader
2023.02.05 13:07
Bitcoin Price may Fall below 20K-Trader
According to a new analysis, the United States will fail in its plans for a “soft landing” on inflation if Bitcoin (BTC) reaches $20,000 again.
Eight’s CEO and founder, Michal van de Poppe, warned that risk assets are about to turn the corner.
According to Van de Poppe, there is a growing possibility that the recovery in crypto and stocks this year could turn bearish amid uncertainty regarding how incoming U.S. macroeconomic data may affect market sentiment.
Bitcoin, for instance, saw gains of 40% in January, but he thinks that a disappointing February is a real possibility, like some others.
Regarding the long-term situation, he stated, “I think that people should understand that there is no soft landing and that there is likely a continuation of this downward trend on the markets.”
Van de Poppe went on to say that the extent of the Federal Reserve’s interest rate hikes meant that the United States of America would “probably have” a recession.
For BTC/USD, a potential retest target lies between $20,000 and $21,000 in the event of a comedown.
A lot depends on the Consumer Price Index (CPI) data for January, which are due on February 14. It could benefit the U.S. dollar while dampening the risk asset rally if it demonstrates that inflation is slowing less than anticipated or even disrupting the downtrend.
After falling 13% since mid-2022, when it reached twenty-year highs, the U.S. Dollar Index (DXY) is currently consolidating.
Van de Poppe went on to say, “In this case, the next week will probably bring a case of the dollar starting to rally, or the week after with CPI and PPI,” so it’s critical to keep an eye on this chart.
Others, on the other hand, debated the possibility of a BTC price decline prior to a less significant macroeconomic week.
Crypto Tony, a well-known trader, said, “Even if this was the start of a bull market, and personally, I am still in the camp we are not,” that a higher low would be a better entry point for longs. On the higher low pullback, you can still get a good safer entry,” he told his followers on Twitter that day.
However, IncomeSharks, a crypto and market education, analysis, and prediction tool, and other well-known bullish voices were still active.
It said in a tweet on Feb. 3 that “people still seem to be confused as to why it’s been up only.”
At the time of writing, BTC/USD was trading around $23,400, with 15 hours remaining until the weekly close in the United States.
Keep in mind that the majority of bulls are still holding instead of selling. Bears are stuck with money. The bears are giving in and buying slowly but surely. The obstinate ones keep shorting, pushing up the price even more.
