Will Bitcoin (BTC) Price Hit $30K by March End? Here’s What Traders Can Expect
Bitcoin has reached a new yearly 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 looms, and the Consumer Price Index (CPI) numbers have been released. Michael van de Poppe, a renowned cryptocurrency trader, and analyst offers insights on Bitcoin’s trading opportunities amidst this apprehension and uncertainty.
A Remarkable Rally
Bitcoin has seen a significant reversal after a mild correction, with a 30% increase over the past three days. Investors are anticipating 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 in his entire policy.
Uncertainty and Instability
The CPI numbers are also a matter of concern, with the core CPI stabilizing at 4.5% and then dropping substantially to 6%. In contrast, inflation has risen to 8% in the Netherlands, leading to stagnation in the European markets.
The apprehension in the markets is due to the fact that no one knows whether we’re heading into a period of high inflation similar to the 1970s or 1980s. Powell’s dilemma is that he might have to push to see that inflation goes down, or if he hikes interest rates again with 25 bibs, more banks might fall apart, leading to the collapse of the entire system.
The uncertainty in the market has brought about a positive outcome for the crypto market, with the US seeing crypto as a threat and possibly banning stablecoins. This has attracted more people to investigate what crypto means, and it’s a positive outcome for the market as a whole.
Trading Opportunities for Bitcoin
Van de Poppe suggests being cautious with Bitcoin’s trading opportunities, as the market can reverse quite fast. He suggests several scenarios for traders, such as continuing the rally towards $28,000, taking long positions around $23.3 if there’s a correction, or making a bounce play around $24.8, followed by short positions around $22.5 to $21.
With the market being on the edge, investors need to be cautious. Van de Poppe’s insights offer a helpful perspective on Bitcoin’s trading opportunities amidst 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.