Popular crypto analyst Michaël van de Poppe says he’s looking at two macroeconomic catalysts that could ignite a strong Bitcoin (BTC) surge to $30,000.
The crypto strategist tells his 664,200 Twitter followers that Bitcoin has been grinding up as of late and that a big bounce is in the cards.
“The odds of a relief rally have been increasing recently, and I think it looks good.
All need to be fueled by inflation dropping more than anticipated and the potential pause of hikes.
That will give the relief of Bitcoin towards $30,000ish.”
At time of writing, Bitcoin is changing hands at $17,435. A move toward Van de Poppe’s target suggests an upside potential of over 72% for BTC.
In an effort to combat high inflation, the Federal Reserve raised interest rates multiple times last year, taking the fed funds rate from between 0% and 0.25% in January 2022 to between 4.25% and 4.50% by December.
A high-interest rate environment is typically bearish for risk assets like Bitcoin and crypto as investors have to pay more in borrowing costs to fund new investments.
Meanwhile, a pivot in the Fed’s tight monetary policies could trigger an influx of investments into risk assets.
Van de Poppe also says he’s waiting for the release of the latest Consumer Price Index (CPI) print, which is slated for January 12th. Traders keep a close watch on CPI data to see whether inflation is on the retreat as it could pressure the Federal Reserve to reconsider its hawkish stance.
Looking closer at Bitcoin, Van de Poppe expects BTC to pull back before bulls can take out resistance around $17,500.
“Bitcoin did continue the rally and gets into resistance.
Doubt we’ll break out in one go, needs clear conviction in the coming 24 hours otherwise bearish divergence is possible.
Lower timeframe:
Needs to stay above $17,350 in order to continue rallying, otherwise fakeout.”
Generated Image: Midjourney