The star cryptocurrency had a blissful start to the year 2023 as the currency witnessed a massive surge in January. However, currently Bitcoin is in bear market which has brought down most of the large cap cryptocurrencies. The flagship’s downward journey began just before the weekend hit in and yesterday the currency dropped below $23K.
At the time of reporting, Bitcoin is selling at $22,846 with a drop of 2.33% over the last 24hrs.
As per Mike McGlone, senior macro strategist at Bloomberg, cryptocurrencies might have been hit with their first recession. He also believes that this phenomenon might see assets hitting their lows with increased volatility. McGlone states this after the comparison between Bitcoin Nasdaq 100 index and claims if BTC moves towards recession, Bitcoin might hit a low of $10,000.
#Cryptos may be facing their first real recession, which typically means lower asset prices and higher volatility. The last significant US economic contraction, the financial crisis, led to the birth of #Bitcoin, and the possible coming economic reset may mark similar milestones. pic.twitter.com/YGdsl3Awwj
— Mike McGlone (@mikemcglone11) February 5, 2023
The similar thought process was laid down by another crypto analyst, Michael van de Poppe who claims that crypto will face a disappointing February. Through his new strategy video on Youtube, he claims that Crypto might be hit with a recession and if that happens, Bitcoin will drop towards a range of $20,000 and $21,000 area.
Meanwhile, another fellow strategist known as Dark Defender goes through his predictions and lays down a bear target for Bitcoin. The analyst warns his 83,000 Twitter followers that when Bitcoin was trading around $16K in Dec 2022, he had predicted BTC to hit between $19k and 24K in Feb.
Further, the analyst asserts that on Feb 1 2023, Bitcoin reached $24,258 as predicted. Today, as per his claims Bitcoin is trading around $22,000. Hence, now Dark Defender questions whether Bitcoin will hit $10,000 level in April as per his forecasts.
Precise.
Dec-22: Call for the reversal for #BTC when it was $16k. And we told target is 19-24k in Feb.
Feb-23: BTC hit, $24,258 excatly on 1-Feb
Before Hitting 24k, we made a warning
Now, Reversal from 24k to 22k.
10k BTC in April?
Time will tell. https://t.co/okneblWWim
— Dark Defender (@DefendDark) February 5, 2023
However, the further action by Bitcoin and other cryptocurrencies will mostly depend on January’s Consumer Price Index (CPI) which is scheduled to be released on Feb 14.
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Elena R
Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing – accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
