Bitcoin (BTC) may face a retest of $ 20,000 and the United States will fail in its plans for a “soft landing” on inflation, says a new analysis.
In a YouTube update on February 5, Cointelegraph contributor Michaël van de Poppe, founder and CEO of the trading company Eight, warned that the tides are turning because of risk assets.
US “probably” headed for recession – Van de Poppe
Amid confusion over how incoming US macroeconomic data could affect market sentiment, Van de Poppe said there is a possibility of a rebound seen in crypto and stocks this year could be down.
Bitcoin, for example, saw a 40% gain in January, but like some others, he believes that February disappointment is a real possibility.
“I think people need to understand that there is no soft landing, that there is a possibility of a continuation of this downward trend in the market,” he said of the longer-term status quo.
The US, Van de Poppe continues, will “probably have” a recession thanks to the extent of the Federal Reserve’s interest rate hikes.
If the comedown starts to show itself, for BTC/USD, the potential retest target lies between $20,000 and $21,000.
Much depends on the results of the Consumer Price Index (CPI) data for January, due on February 14. Whether it shows that inflation is slower than expected or even disrupts that downward trend, the results could benefit the US dollar while taking the wind out of the risk asset rally.
The US Dollar Index (DXY), as reported by Cointelegraph, is currently in the process of consolidation after dropping 13% since mid-2022, while hovering around a twenty-year high.
“In this case, the next week will probably bring a little bit of the dollar since the general meeting, or the week after with the CPI and the PPI, so it is very important to keep an eye on this chart,” Van de Poppe added.
Bitcoin bears “stuck in cash”
Meanwhile, another potential debate for the BTC price pullback ahead of the macroeconomic week is less significant.
Related: Bitcoin clings to $23.5K as traders say BTC ‘identical’ to 2020 breakout
A lower price will provide a better entry point for the long term, popular trader Crypto Tony suggests, arguing that the bear market is still in play.
“Although this is the beginning of a bull market, and personally, I’m still in the no camp. You can still get a safer entry on a lower pullback,” he said. toward Twitter followers of the day.
Some well-known bullish voices are active as usual, including crypto and market education, analysis and prediction tool, IncomeSharks.
“People are still confused as to why it has gone up,” he said summarized in a tweet on February 3.
BTC/USD is trading at around $23,400 at the time of writing, according to data from Cointelegraph Markets Pro and TradingView, with around 15 hours to the US weekly close.
“Just remember the majority of bulls are still holding and not selling. Bears are stuck in cash. Slowly but surely, the bears laugh and buy. The stubborn ones continue to push prices higher.
The views, thoughts and opinions expressed here are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.