Will Bitcoin Price Fall Below $20K Ahead Of US CPI Data
The Bitcoin price correction has swept the crypto market, with the total market cap falling down to almost $1 trillion. After Bitcoin price dropped over 7% in just a few days due to U.S. Fed officials committing to rate hikes and U.S. SEC’s action against staking on centralized exchanges, traders are now looking at levels to buy the dip.
In January, a large group of investors entered the crypto market to bring a broader market recovery. The same group has been waiting for a correction, but now the sentiment is flipping after a massive fall in prices across the market.
Also Read: India’s Finance Minister Addresses G20 Nations’ Crypto Regulation
Popular crypto analyst Michael van de Poppe, who predicted the fall to $21.7K when the BTC price was stuck near $23K, has shared an interesting analysis on the Bitcoin correction and when to buy.
Bitcoin Price. Source: Michael van de Poppe
On the daily chart, Bitcoin price is still in a corrective trend and can hit the $21K support level. It is actually the entry zone that investors should be looking at. However, a broader negative sentiment could take momentum to sweep at $19.7K.
After a “buy the dip”, Bitcoin price can rally to $25K. It is actually a great period to start looking into longs due to the dip season. Interestingly, the U.S. CPI data for January coming on Tuesday is the event after which a massive rally can be seen because the inflation will probably drop like a stone.
Macro Events Impact on Bitcoin Is Declining
Bitcoin has become immune to all macro events except inflation. Experts believe the Bitcoin price correction will be short-lived unless microeconomics going to shift and the NASDAQ is going to fall apart.
The US Dollar Index (DXY) started moving higher after hitting the support. A rise in DXY above 103.50 is putting the Bitcoin price under pressure, along with the current FUD in the crypto market.
