Bitcoin Price to Fall Below $20K Before US CPI Data

The Bitcoin price correction has taken over the crypto market with the total market cap dropping to $1 trillion. The Bitcoin price plunged more than 7% in a matter of days after the U.S. Fed announced rate hikes and the U.S. SEC took action against staking on central exchanges. Now traders are looking for levels to buy the dip.
A large number of investors joined the crypto market in January to help bring about a wider market recovery. This same group had been waiting for a correction but now the sentiment has changed after a huge fall in market prices.


Also read: India’s Finance Minister addresses G20 Nations’ Crypto Regulation
Michael van de Poppe, a well-known crypto analyst, shared his interesting analysis on the Bitcoin correction, and when to buy.
Bitcoin Price. Source: Michael van de Poppe

The daily chart shows that Bitcoin price is still in a corrective mode and could reach the $21K support level. This is the entry zone investors should be watching. A wider negative sentiment could lead to a sweep at $19.7K.
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Bitcoin prices can rise to $25K after a “buy-the-dip” transaction. The dip season is a great time to look into longs. The U.S. CPI data January will be released on Tuesday. This is the day after which you can see a huge rally because the inflation will likely drop like a stone.

Bitcoin is immune to inflation and all other macroeconomic events. Experts believe that the Bitcoin price correction is temporary unless microeconomics shifts and the NASDAQ falls apart.
After hitting the support, the US Dollar Index (DXY), began moving higher. The current FUD in crypto markets and a rise in DXY above103.50 are putting pressure on the Bitcoin price.
Also read: Ethereum Price Reaches $1500 Psychological Support, Massive Falls Coming?

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The content presented may contain the author’s personal opinion and is subject to market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.

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