After an abysmal showing yesterday, crypto prices are surging. After falling below $19,000 yesterday, the Bitcoin price is currently holding firm at over $19,200. Ethereum is outperforming Bitcoin in terms of price movement. While BTC is only up by 2%, ETH is up by close to 7%. It is currently trading above $1,616.
Other altcoins are also experiencing a strong surge. Tech-oriented NASDAQ 100, to which crypto is strongly correlated, rose by 2.18%. Global stocks, in Asia and Australia, also had a strong showing.
With crypto prices surging, the question now becomes whether the bottom is truly in or whether this is another bull trap.
Bitcoin Price: Bottom vs. Bull Trap
Opinions are divided on the issue of whether the bottom is in. Michael van de Poppe, a major crypto influencer and CEO of Eight Global, believes that the bottom is truly in. He highlights the strong showing of Ethereum and other altcoins to be the reason why. Moreover, he highlights yesterday’s drop in the dollar’s strength as another reason for the surge in Bitcoin and other crypto prices. De Poppe asks his investors to long crypto.
However, de Poppe might be in the minority on this issue. The dollar’s show of strength is due to the Fed’s quantitative tightening. There is no indication that the Fed will pivot from its hawkish stance. The CME FedWatch Tool is still expecting an unusually large 75 bps hike. With the Fed continuing its quantitative tightening, the dollar is expected to rise.
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Another major crypto influencer, il Capo of Crypto, believes that the lows are still in the future. He does expect a short-term bullish scenario for the Bitcoin price. He believes that the Bitcoin price will rise to the $22,500-$22,000 range and then plummet to new lows.
Indicators To Look Out For
Bitcoin price is now dependent upon the dollar’s strength. The September 13 CPI release will highlight the Fed’s monetary policy. It will have a major impact on the Bitcoin price.
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