Bitcoin price may retest $20K on US CPI amid absence of soft landing — trader

cointelegraph.com:

Bitcoin (BTC) could face a retest of $20,000 and the United States fail its plans for a “soft landing” on inflation, new analysis says.

In a YouTube update on Feb. 5, Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, warned that the tide is due to turn for risk assets.

Amid confusion over how incoming U.S. macroeconomic data may affect market sentiment, there is an increasing chance that the rebound seen in crypto and stocks this year may flip bearish, Van de Poppe says.

Bitcoin, for example, put in 40% gains in January, but like some others, he believes that a disappointing February is a real possibility.

“I think that people should understand that there is no soft landing, that there is likely a continuation of this downwards trend on the markets,” he said about the longer-term status quo.

The U.S., Van de Poppe continued, would “probably have” a recession thanks to the extent of the Federal Reserve’s interest rate hikes.

Should a comedown begin to show itself, for BTC/USD, a potential retest target lies between $20,000 and $21,000.

Much depends on the outcome of Consumer Price Index (CPI) data for January, due Feb. 14. Should it show that inflation is slowing less than expected or even disrupting that downtrend, the results could benefit the U.S. dollar while taking the wind out of the risk asset rally.

The U.S. dollar index (DXY), as Cointelegraph reported, is currently in the process of consolidating after dropping 13% since mid-2022, when it circled twenty-year highs.

“In this case, the next week will probably bring a case of the dollar starting to rally, or the week after with CPI and PPI, so that’s why it’s very important to keep an eye on this chart,” Van de Poppe added.

Ahead of a