Will the price of Bitcoin (BTC) reach $30,000 by the end of March? Here’s what traders can expect
Bitcoin has hit a new annual high of $26,000, with investors experiencing incredible FOMO and wanting a piece of the action.
However, market uncertainty continues to prevail as the Federal Reserve’s upcoming policy update approaches and Consumer Price Index (CPI) numbers have been released. Michael van de Poppe, a well-known cryptocurrency trader, and analyst provides insight into Bitcoin’s trading opportunities amid this concern and uncertainty.
A remarkable rally
Bitcoin has seen a significant reversal after a mild correction, gaining 30% in the last three days. Investors expect a big bull run, with targets set between $50,000 and $70,000. However, Powell’s upcoming Federal Reserve policy update raises questions about the continuation of hikes or a cut across his policy.
Uncertainty and instability
The CPI numbers are also a concern, with core CPI stabilizing at 4.5% and then falling significantly to 6%. In contrast, inflation has risen to 8% in the Netherlands, which has led to stagnation in the European markets.
The concern in the markets stems from the fact that no one knows whether we are heading into a period of high inflation similar to the 1970s or 1980s. Powell’s dilemma is that he may have to push to see inflation come down, or if he raises interest rates again by 25 bibs, more banks may fall apart, leading to the collapse of the entire system.
The uncertainty in the market has produced a positive result for the crypto market, where the US sees crypto as a threat and possibly bans stablecoins. This has attracted more people to investigate what crypto means and it is a positive result for the market as a whole.
Trading opportunities for Bitcoin
Van de Poppe suggests being careful with Bitcoin’s trading options, as the market can turn quite quickly. He suggests several scenarios for traders, such as continuing the rally towards $28,000, taking long positions around $23.3 if there is a correction, or making a bounce play around $24.8, followed by short positions around $22.5 to $21.
With the market on edge, investors need to be cautious. Van de Poppe’s insight provides a useful perspective on Bitcoin’s trading opportunities amid market uncertainty. It remains to be seen what the Federal Reserve policy update will bring and how it will affect the crypto market. At press time, BTC is worth $24,982.
