Bitcoin (BTC) could face a retest of $20,000 and the United States will fail in its plans for a “soft landing” on inflation, a new analysis says.
in a Youtube Update on Feb. 5, Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, warned that the tide must turn for risky assets.
US ‘probably’ heading for recession: Van de Poppe
Amid confusion over how incoming US macroeconomic data may affect market sentiment, Van de Poppe says there is a growing possibility that the rally seen in cryptocurrencies and stocks this year could turn bearish. .
Bitcoin, for example, saw gains of 40% in January, but like others, he believes that a disappointing February is a real possibility.
“I think people should understand that there is no soft landing, that this downtrend in the markets is likely to continue,” he said of the longer-term status quo.
The United States, Van de Poppe continued, would “probably have” a recession thanks to the extent of the Federal Reserve’s rate hikes.
Should a decline start to show, for BTC/USD, a potential retest target lies between $20,000 and $21,000.
Much depends on the outcome of the January Consumer Price Index (CPI) data, which is due February 14. If they show that inflation is slowing less than expected or even breaking that downward trend, the results could benefit the US dollar while taking its breath away. the rally in risky assets.
The US Dollar Index (DXY), as Cointelegraph reported, is currently in the process of consolidating after falling 13% since mid-2022, when it hit 20-year highs.
“In this case, next week will probably bring a case where the dollar starts to rise, or the following week with CPI and PPI, so it’s very important to watch this chart,” Van de Poppe added.
Bitcoin bears are “stuck on cash”
Meanwhile, others debated the possibility of a BTC price pullback ahead of a less significant macroeconomic week.
Related: Bitcoin Clings To $23.5K As Trader Says BTC Is ‘Identical’ To 2020 Breakout
A higher low would provide a better entry point for longs, popular Crypto trader Tony suggested, arguing that the bear market was still in play.
“Even if this were the start of a bull market, and personally, I’m still in the camp that we’re not in. You can still get a nice safer entry on the higher and lower pullback,” she said. said Twitter followers on the day.
However, some familiar bullish voices were as active as ever, including crypto and market prediction, analysis and education tool, IncomeSharks.
“People still seem to be confused as to why it’s only been active,” he said. summarized in a tweet on February 3.
BTC/USD was trading around $23,400 at the time of writing, according to data from Cointelegraph Markets Pro and TradingViewwith around 15 hours until the US weekly close.
“Just remember that most of the bulls are still being kept and not being sold. The bears are stuck in cash. Slowly but surely, the bears are giving in and buying. The stubborn keep shortening and raising the price even higher.”
The views, thoughts, and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
