According to a new analysis, Bitcoin BTC tickers down $23,143 could face a retest of $20,000, and the United States plans for a “soft landing” on inflation will fail.
According to Van de Poppe, the United States is “likely” headed for a recession.
Amid uncertainty about how incoming US macroeconomic data will affect market sentiment, Van de Poppe believes there is an increasing chance that the bullish trend seen in crypto and stocks this year will reverse.
Bitcoin, for example, gained 40% in January, but he, like many others, believes a disappointing February is a real possibility.
“I think people should understand that there is no soft landing, that this downward trend on the markets is likely to continue,” he said of the longer-term situation.
The extent of the Federal Reserve’s interest rate hikes, Van de Poppe continued, would “probably” lead to a recession in the United States.
If a pullback begins, a potential retest target for BTC/USD is between $20,000 and $21,000.
Much depends on the outcome of the January Consumer Price Index (CPI) data, due on February 14. If it demonstrates that inflation is slowing less than expected or disrupting the downtrend, the results could benefit the US dollar while dampening the risk asset rally.
