The crypto market is in a major rut due to the tough macroeconomic conditions. Bitcoin, in particular, is down over 60% from its all0time high. Moreover, BTC is also stuck in the $18k-$20K range for over a month now. The lack of volatility is frustrating for investors as BTC is neither surging nor reaching the bottom. However, one expert has given the key area which will give a strong Bitcoin buy signal.
Michael van de Poppe, the CEO of Eight Global and a major crypto analyst, reveals that BTC needs to break $19.4K-$19.6K clearly. He believes that breaching this level can kick-start a major Bitcoin rally.
Michael also considers the current structure of the US dollar and yields and believes that the rally may take place in 1-2 weeks.
Why Bitcoin Is Struggling
The crypto market is dependent on the macroeconomic features governing its price movement. Coinbase Research believes that the crypto market is currently in strong correlation with the broader general market. Therefore, the movement in the stock market is also visible in the crypto market.
The Federal Reserve is engaging in restrictive monetary policy to curb inflation levels in the country. Other central banks such as the European Central Bank and the Bank of England are also engaging in similar practices.
However, the Fed’s restrictive stance is causing a severe selloff in the crypto market. Bitcoin is down over 60% from its all-time high. Bitcoin has also plummeted due to the strength of the US Dollar.
The US Dollar has reached record highs and has destroyed the stability of many currencies. Bitcoin, along with the rest of the crypto market and stock market, also plummeted.
Will Bitcoin Get Buy Signal In Recession
The threat of a recession to the global economy may force the Federal Reserve to pivot from its position of hawkish monetary policy. However, the entire stock market performs negatively during recessions and if Bitcoin keeps its correlation, it can suffer negatively as well.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.