Here’s why this expert thinks the next bearish trend for crypto could be near
The past few months have brought a roller-coaster experience for cryptocurrency prices. The crypto market has soared due to the impact of macro factors. But the last 24 hours created a new strength in the market.
Almost all the assets made positive moves to push the market into the green. The price of Bitcoin has gradually climbed to the critical $20,000 level as the token rallied above a 2.5% uptrend. In the early trading hours today, the BTC price reached $20,342.
The bullish trend cuts across altcoins and other crypto assets. Ethereum has crossed the $1,350 level as it gained over 1.8% in the last day.
Dogecoin (DOGE) made a huge recovery with an increase of over 8% in the last 24 hours. This marks unprecedented bullish strength in the digital asset market for today.
Moreover, Ripple (XRP) re-directed its pattern through an increase of about 5% in the last 24 hours.
Experts believe the market for digital assets cannot sustain a price increase
Experts are predicting another bottom for the crypto market despite the recent impressive price movements. They believe that crypto-assets lack sustainability for the price rise and will soon experience a bearish trend.
Eight Global CEO and crypto analyst Michael van de Poppe commented on a possible turn in the crypto market. He believes that the value of the US dollar will soon rise. According to him, such a new development will affect the crypto market through a small correction.
In addition, US unemployment data will be released on Friday. In his thinking, Michael Poppe stated that the data could be wrong and negatively affect the crypto market.
In recent years, macroeconomic conditions have negatively affected the crypto market. As a result, such conditions now dictate price developments in the market. This follows the strong correlation between crypto and traditional general markets.
The crypto market is still struggling
Despite the recent bullish trend, there are still signs of struggle in the crypto market. The US central bank took a hawkish stance in its controlling measures against inflation. With its approach of raising interest rates and tightening other financial operations, many people are in fear.
Following increases in prices from global economies, the UN has called for them to avert the use of an aggressive approach. Instead, the UN highlighted a possible global recession with the stance of most central banks. But the US central bank will not reduce its strength.
Oil prices increase tension in the raging macroeconomic environment. As a result, the Organization of the Petroleum Exporting Countries (OPEC) has planned to cut supplies to boost oil prices, the worst cut since 2020. OPEC is expected to hold its meeting on Wednesday for its final decision.
Featured image from Pixabay and chart from TradingView.com
