Bitcoin (BTC<\/a>) may continue its \u201cbear market,\u201d one trader says amid hope that a U.S. dollar reversal could soon improve BTC price action.<\/p>\n In his latest YouTube update on May 2, Cointelegraph contributor Micha\u00ebl van de Poppe argued<\/a> that USD\u2019s current surge would not last long.<\/p>\n Bitcoin is still under pressure as stocks and crypto alike face the reality of a major policy flip from the U.S. Federal Reserve. <\/p>\n Due to be announced this week, the Fed is tipped to end the \u201cfree money\u201d era since the March 2020 COVID crash once and for all \u2014 and risk assets should be first to suffer.<\/p>\n The COVID crash saw the previous peak in the U.S. dollar index (DXY), which then declined as Bitcoin led crypto markets to new highs. <\/p>\n That inverse correlation since turned around once more, and now, with DXY at twenty-year highs, crypto is on the receiving end of pain.<\/p>\n Van de Poppe notes, however, that compared to previous DXY bull runs, Bitcoin has lost considerably less in USD terms. 2014, for example, saw BTC\/USD shed over 80%, while the drawdown from its all-time highs in November 2022 has so far only totaled a maximum of 55%.<\/p>\n \u201cRight now, we\u2019re seeing this implied strength, and I think that the dollar is getting into a period where we\u2019re getting done of that move,\u201d he commented, adding that a reversal was \u201cclose.\u201d<\/p>\n Nonetheless, Van de Poppe said, the \u201cBitcoin bear market might continue,\u201d and if so, targets for the downside now extend beyond $30,000 to $25,000.<\/p>\n On the long-term view, popular analysts continued to favor Bitcoin\u2019s enduring strength following a period of upcoming pain.<\/p>\n Related:\u00a0Fed \u2018will determine the fate of the market\u2019 \u2014 5 things to know in Bitcoin this week<\/a><\/em><\/strong><\/p>\n Speaking<\/a> to Wall of All Streets Podcast host Scott Melker on May 2, Mike McGlone, chief commodities strategist at Bloomberg Intelligence, said that a reset of crypto and traditional markets alike was \u201calready happening.\u201d<\/p>\n \u201cThis is an ebbing tide of massive speculative excesses in all markets; cryptos were just a great leading indicator and now we\u2019re taking the tide out and it\u2019s a question of how far,\u201d he explained.<\/p>\n \u201cThis week, the Fed\u2019s going to raise 50 basis points for the first time in years; I could go back and check but I haven\u2019t seen that in a long time.\u201d<\/p><\/blockquote>\n As before, McGlone nonetheless predicted<\/a> that Bitcoin would ultimately benefit from the upcoming upheaval.<\/p>\n \u201cI think that\u2019s going to be part of the trigger that\u2019s going to flush out the rest of the excesses in the market, most notably equities, and then Bitcoin will come out ahead \u2014 and it\u2019s already happening,\u201d he added.<\/p>\n BTC\/USD traded at $38,900 at the time of writing, according to data from Cointelegraph Markets Pro<\/a> and TradingView<\/a>.<\/p>\n The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<\/div>\nDollar strength reversal “close”<\/h2>\n
![](\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/ac5a5831-ad36-486d-851f-df28a605c234.png\")
“Massive speculative excesses”<\/h2>\n
![](\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/7ee32754-767c-43ca-8bbd-8632151e9c7c.png\")