Why Bitcoin Could Hit $90K by the End of 2022, According to This Prediction

The price of Bitcoin is recovering after a major slump to the low $30,000. At the time of writing, BTC is trading at $37,774 with a gain of 1.9% in the last 24 hours and could record more gains in the near term.

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BTC on a downtrend in the 4-hour chart. Source: BTCUSD trading summary

Bitcoin’s most recent recovery could be related to the relief in the traditional market. At the time of writing, the S&P 500 Index is trading +105 points or 1.44% on the 4-hour chart.

The cryptocurrency shows high correlations with US stocks and could continue to track in the near term. In that sense, Bitcoin bulls could find backup during an ongoing rally in stock relief.

Dates from Material Indicators is showing some resistance, in lower time frames, above BTC’s current price levels. Therefore, $39,000 and $40,000 have become key resistance levels that need to be converted to support.

In the event of further downside, Material Indicators is registering approximately $3 million in Bitcoin bidding orders near $36,000. These levels could act as critical support in a bearish scenario, for shorter time frames, and should be held to avoid a retest of previous lows near $33,000.

Bullish momentum could resume at full throttle in the coming months, according to a report executed by Finder. After consulting a panel of 33 experts on the possible price scenarios for Bitcoin across multiple timeframes.

The consensus among these experts is bullish, a prediction that defies current market sentiment. The potential hike in interest rates by the US Federal Reserve could be a headwind for Bitcoin. At least, this seems to be the predominant story for some market participants.

A Bitcoin Rally Before Another Multi-Year Bear Market?

As can be seen below, the pundits have gradually reversed their bias from bullish for most of January to neutral in the past week and bearish for the week of February 6, 2022. The potential impact of the Fed rate hike, the experts say that this will remain a top priority for investors in the first half of the current year.

(The) first half of 2022 will be dominated by concerns about higher interest rates, which will affect all risky assets, including Bitcoin. We wouldn’t be surprised if Bitcoin drops another 30% from its current level.

In that sense, more than 50% of the interview panel believes Bitcoin can be considered best in a rising interest rate scenario. The experts think the price of BTC will peak at $93,717 in the coming months, before returning to $76,360 by the end of 2022.

Source: Finder’s Bitcoin Price Prediction Report

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BTC’s price rally will be driven by more inflation. As NewsBTC has reported, Mike McGlone, Senior Commodity Strategist for Bloomberg Intelligence, has taken a similar view, claiming that the cryptocurrency will start to outperform stocks and other risky assets. Finder panel added:

It is possible that the asset bubble created by the Fed by keeping interest rates around 0% for more than a decade will spill over into Bitcoin. However, the cryptocurrency has the gold-like fundamentals and confidence to weather the storm better than its ilk.

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