The cryptocurrency market is in a rush due to challenging macroeconomic conditions. Bitcoin price in particular has lost more than 60% since its November 2021 peak. Despite this, over 15% rallies await big names like Morgan Stanley.
Michael van de Poppe expects activity in Bitcoin in 1-2 weeks
Michael van de Poppe, CEO of Eight Global and a well-known crypto analyst, reveals that BTC should clearly break $19.4k – $19.6k. The analyst believes that breaking this level could initiate a massive Bitcoin rally. Poppe also assesses the current structure and yields of the US dollar. Accordingly, he expects the rally to take place in 1-2 weeks.
A crucial area for #Bitcoin, as it's still hovering in the range for more than a month.
It needs to break $19.4-19.6K clearly.
If that happens, volatility can finally kick in.
Given the structure of the $DXY and the Yields, I expect this to occur in 1-2 weeks. pic.twitter.com/m9xcy3L1hT
— Michaël van de Poppe (@CryptoMichNL) October 17, 2022
Why is Bitcoin price lacking bullishness?
The crypto market depends on the macroeconomic features that govern the price action. Coinbase Research believes that the crypto market is currently strongly correlated with more traditional markets. Therefore, the movement in the stock market also shows itself in the crypto market.
On the other hand, the Fed applies restrictive monetary policy to curb inflation levels in the US. Other central banks, such as the European Central Bank and the Bank of England, have similar practices.
Morgan Stanley’s Michael J. Wilson expects a short-term rally
Morgan Stanley’s CIO and bear market expert Michael J. Wilson, in his new analysis, predicted that the US stock market could witness a short-term rally of 16%. As the S&P 500 tests the 200-week moving average (WMA), it expects a short-term recovery in the US stock market, as reported by Bloomberg on October 17.
Meanwhile, Bitcoin (BTC) price continues to struggle below $20,000 with the 200-WMA near the $23,000 level. However, there have been several bear market rallies since the BTC price dropped below $20,000 in June. However, the bulls failed to hold their ground and the bears took over. cryptocoin.comAs you follow, it forced the Bitcoin price to fall below $20,000 again.
Also, Bitcoin price has failed to break past the 200-WMA since the short-term spike in August. Michael J. Wilson’s most obvious downward forecast was that he accurately predicted the decline at the start of the year. Wilson now forecasts a 16% rise from current levels, despite maintaining the overall negative long-term stance on the stock market:
While this may seem like a huge move, it will be in line with bear market rallies this year and before.
Meanwhile, the next Fed FOMC meeting, which could lead the market for the next few months, is on November 2. As recession fears continue to mount, the Fed maintains its hawkish stance to curb inflation.
