Bitcoin ‘bear market’ may take BTC price to $25K, says trader with stocks due capitulation

Bitcoin (BTC) could proceed its “bear market,” one dealer says amid hope {that a} U.S. greenback reversal may quickly enhance BTC worth motion.

In his newest YouTube replace on Might 2, Cointelegraph contributor Michaël van de Poppe argued that USD’s present surge wouldn’t final lengthy.

Greenback energy reversal “shut”

Bitcoin remains to be beneath stress as shares and crypto alike face the truth of a serious coverage flip from the U.S. Federal Reserve.

Because of be introduced this week, the Fed is tipped to finish the “free cash” period for the reason that March 2020 COVID crash as soon as and for all — and danger property needs to be first to endure.

The COVID crash noticed the earlier peak within the U.S. greenback index (DXY), which then declined as Bitcoin led crypto markets to new highs.

That inverse correlation since rotated as soon as extra, and now, with DXY at twenty-year highs, crypto is on the receiving finish of ache.

Van de Poppe notes, nonetheless, that in comparison with earlier DXY bull runs, Bitcoin has misplaced significantly much less in USD phrases. 2014, for instance, noticed BTC/USD shed over 80%, whereas the drawdown from its all-time highs in November 2022 has to this point solely totaled a most of 55%.

BTC/USD vs. U.S. greenback index (DXY) chart. Supply: TradingView

“Proper now, we’re seeing this implied energy, and I feel that the greenback is getting right into a interval the place we’re getting completed of that transfer,” he commented, including {that a} reversal was “shut.”

Nonetheless, Van de Poppe stated, the “Bitcoin bear market would possibly proceed,” and in that case, targets for the draw back now lengthen past $30,000 to $25,000.

“Large speculative excesses”

On the long-term view, fashionable analysts continued to favor Bitcoin’s enduring energy following a interval of upcoming ache.

Associated: Fed ‘will decide the destiny of the market’ — 5 issues to know in Bitcoin this week

Chatting with Wall of All Streets Podcast host Scott Melker on Might 2, Mike McGlone, chief commodities strategist at Bloomberg Intelligence, stated {that a} reset of crypto and conventional markets alike was “already occurring.”

“That is an ebbing tide of huge speculative excesses in all markets; cryptos had been only a nice main indicator and now we’re taking the tide out and it’s a query of how far,” he defined.

“This week, the Fed’s going to lift 50 foundation factors for the primary time in years; I may return and test however I haven’t seen that in a very long time.”

As earlier than, McGlone nonetheless predicted that Bitcoin would finally profit from the upcoming upheaval.

“I feel that’s going to be a part of the set off that’s going to flush out the remainder of the excesses available in the market, most notably equities, after which Bitcoin will come out forward — and it’s already occurring,” he added.

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

BTC/USD traded at $38,900 on the time of writing, in response to information from Cointelegraph Markets Professional and TradingView.

The views and opinions expressed listed below are solely these of the creator and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails danger, it is best to conduct your personal analysis when making a choice.