Michael van de Poppe, a famous crypto strategist, believes critical macroeconomic factors might spark a powerful surge of Bitcoin (BTC) back to the $30,000 range. According to the crypto analyst with 664,200 followers on Twitter, Bitcoin has been pounding recently, and he suspects a big rally is coming.
“The chances of a rescue rally have increased recently, which is a good sign. This must be stimulated by lower-than-expected inflation and a possible hike pause. This will provide BTC relief towards $30,000ish.”
At the time of writing, the leading digital asset trades at $18,183. This price action implies that it moved towards the direction predicted by Van de Poppe, which signifies that BTC has an increase potential of more than 72%.
Inflation And Volatile Assets
The Federal Reserve hiked interest rates to fight rampant inflation several times through 2022, raising the rate from 0.25% in January to 4.25-4.50% in December. Typically, an environment with high interest is bearish for volatile assets such as BTC and other cryptocurrencies because investors must pay higher costs to finance new investments.
Conversely, a shift in Fed’s strict monetary policies might result in an investment influx into the risk assets. Van de Poppe also said he is looking forward to the newest CPI (Consumer Price Index) release scheduled for January 12, 2023.
Usually, traders closely monitor CPI records to see if inflation is declining, as this could pressure the Fed Reserve to reassess its tough stance on aggressive rate hikes. After having a closer look at the BTC price chart, the crypto analyst anticipates a drawdown before bulls could break through resistance at approximately $17,500.
In his words, “BTC continues its rally and encounters resistance. I doubt we will break out all at once; we need an evident conviction within the next 24 hours, or bearish divergence would be possible. “
Van de Poppe Breaks Down His Prediction For BTC Rally This Year
Earlier, the famous crypto analyst released his forecasting for Bitcoin this year.
“Quarter 1: Markets move sideways, and BTC might hit a bottom which would be brief.
Quarter 2: Bitcoin rallies around the $35K level amid a temporary stop in rate raises or an inflation decline.
Quarter 3 to 4: the start of a recession, with a final decrease in indices.”
Van de Poppe believes 2024 will kickstart the next bull cycle, which will cause BTC to trade at about $150K.
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