Will Bitcoin price fall below $20K ahead of US CPI data
The Bitcoin price correction has swept the crypto market, with the total market capitalization dropping to nearly $1 trillion. After the Bitcoin price fell over 7% in just a few days due to US Fed officials committing to rate hikes and the US SEC’s crackdown on betting on centralized exchanges, traders are now looking at levels to buy dips.
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 mood is turning after a massive price drop across the entire market.
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Popular cryptoanalyst Michael van de Poppe, who predicted the drop to $21.7K when the BTC price got stuck near $23K, has shared an interesting analysis on the Bitcoin correction and when to buy.
On the daily chart, the Bitcoin price is still in a corrective trend and may reach the $21K support level. It is actually the entry zone that investors should be looking at. However, broader negative sentiment could take momentum to sweep to $19.7K.
After a “buy dip”, the Bitcoin price can increase to $25K. It is actually a good period to start looking at longs because of the dip season. Interestingly, the US CPI data for January due on Tuesday is the event after a massive recovery could be seen as inflation is likely to drop like a rock.
The impact of macro events on Bitcoin is diminishing
Bitcoin has become immune to all macro events except inflation. Experts believe that the Bitcoin price correction will be short-lived unless the microeconomics are going to change and the NASDAQ is going to fall apart.
The US Dollar Index (DXY) started to move higher after hitting the support. A rise in DXY above 103.50 puts Bitcoin price under pressure, along with today’s R&D in the crypto market.
also read: Ethereum Price Reaches $1,500 Psychological Support, Massive Fall Coming?
