Thursday, May 26, 2022

Traders delay $100K Bitcoin prediction, but still expect a blow-off top in 2022

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Bullish merchants that drank the “Bitcoin to $100,000 by year-end” Kool-Support are actually coming to phrases with the truth that there could also be no Santa Claus rally to wrap up 2021. For the time being, the pipe dream has morphed into easy hopes that the highest cryptocurrency can at the very least end the yr above $50,000. 

Knowledge from Cointelegraph Markets Pro and TradingView reveals that the bounce in price seen in BTC following remarks from Federal Reserve Chair Jerome Powell has just about evaporated and over the previous 48-hours the worth has swept contemporary lows at $45,500 and from the look of issues, the worth might drop even additional.

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BTC/USDT 4-hour chart. Supply: TradingView

Right here’s a take a look at what merchants take into consideration Bitcoin’s present value motion and what could possibly be in retailer for the rest of 2021.

Bitcoin’s consolidation mirrors Might’s value motion

Pseudonymous Twitter analyst, ‘Rekt Capital’, compared the present value motion to the consolidation seen in Might by means of July.

BTC/USD 1-week chart. Supply: Twitter

Rekt Captial stated,

“BTC continues to be consolidating inside these two key bull market EMAs. Identical to in Might 2021 (yellow circle).”

If an identical sample had been to play out, the worth of BTC might proceed to consolidate and drift decrease for an additional 6 to eight weeks earlier than resuming its uptrend.

$44,000 could possibly be the “backside”

An identical situation was forecast by Cointelegraph contributor Michaël van de Poppe, who posted the next chart outlining a tough sketch of how BTC value motion might unfold over the subsequent couple of months.

BTC/USDT 4-hour chart. Supply: Twitter

Based mostly on the chart offered, van de Poppe sees the potential for one other drawdown to the $44,000 vary which will likely be adopted by a return to the present ranges for a quick consolidation interval after which a resumption of the uptrend.

Associated: Analyst lists 21 factors calling for Bitcoin price upside — But just 4 bearish signals

Swings in sentiment don’t change the underlying power

A remaining little bit of perception got here from cryptocurrency analyst ‘TechDev’, who posted the next chart detailing a extra macro view of BTC’s value motion after every halving cycle.

BTC value throughout every halving cycle. Supply: Twitter

TechDev recognized two earlier cases the place BTC value noticed intense intervals of volatility solely to be adopted by a late stage rally and blow-off high situation to a brand new all-time excessive.

TechDev stated,

“Regardless of a number of swings in sentiment during the last 2 weeks, Bitcoin is in the identical macro place.”

Observe-up tweets and responses pointed to a typically bullish outlook for BTC in the long run for TechDev, who stated that “all eyes on the retracement ranges.”

The views and opinions expressed listed here are solely these of the creator and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer includes threat, you must conduct your individual analysis when making a choice.