After falling below $19,000 last week, Bitcoin was able to stop the slide and eventually reverse its price trajectory. BTC was able to sustain its rebound and managed to go past the $20,000 threshold on Friday, September 9.
The crypto continued its rebound over the weekend and even managed to surge past $22,000 on Monday. At the time of writing, Bitcoin traded at $22,212.35 per coin and posted a gain of 2.01 percent for the past 24 hours based on Coinmarketcap data.
However, not everyone believes that the crypto would be able to sustain its current rally. Popular trader Crypto Ed predicts that a corrective move on BTC/USD could be on the horizon. “I would say that all signs are there for some shorts,” the trader told his YouTube viewers, according to Cointelegraph.
The trader went on to say that Bitcoin's potential downside is at $20,800 while its upside is likely limited to $23,000. However, he will consider changing his strategy if BTC will manage to move past this level. “I only would be looking for longs if we break $23,000, then for a move towards $28,000–$29,000,” Crypto Ed explained.
Similarly, analyst il Capo of Crypto predicts that Bitcoin’s current bullish trend might be short-lived. He said that BTC will likely go as high as $23,000 before turning bearish once more.
“Most people getting bullish now. Remember that this is a short squeeze, a bounce that happens during a bear market to continue the downtrend afterward,” the analyst tweeted. “I still expect a little bit higher ($22500–$23000), but soon I will turn full bearish again.”
Alexandre Lores, director of blockchain markets research at Quantum Economics pointed out a number of factors that are driving the recent price movements of assets. “In general, this macro environment is hostile to all risk assets, including bitcoin… which is (driven by) the Federal Reserve’s raising rates and Europe and U.S. ESG (environmental, social and corporate governance) energy policies combined with post COVID growth and the Russia-Ukraine war,” Lores wrote CoinDesk in a Telegram message.
Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, also gave the same assessment. “The macro environment also continues to prove difficult with the dollar continuing to put in highs. This impacts all risk assets as we can see,” Ayyartold CNBC. "If we see the dollar start to move back down, then we should be able to get risk assets such as bitcoin move back up again."