![]() First, there will be regulatory clarity by 2025, which means that many institutional investors will be able to invest in it well. In my view, I suspect that the price will be significantly higher than where it is because of three main reasons. Predicting where the Bitcoin price will be in 2025 is a bit difficult. They include the co-founder of Nexo and analysts at JP Morgan. The situation will then change in the second quarter as investors buy the fact that the Fed has started hiking rates. Still, some analysts believe that the BTC price will rise to about $100,000 in 2022. This decline will happen as investors price in a more hawkish Federal Reserve. Therefore, I suspect that the bearish trend will continue in the first quarter, with the next key target being the July 2021 low of about $30,000. Oscillators like the Relative Strength Index (RSI) have also turned lower. A death cross is a situation when the 200-day and 50-day moving averages make a crossover. Most importantly, a death cross has happened. ![]() ![]() The price has moved below the 200-day and 50-day moving averages. The Bitcoin price is hovering above $40,000 in the second week of the year. However, the opposite could happen since the Fed tightening situation has already been priced in by investors. In theory, the DXY index should soar as the Fed starts to hike rates while the Bitcoin price should decline. In the second week of the year, the US dollar index was trading at $95.95, which was about 1% below the highest level in 2021. The US dollar index moved sideways in 2021 as investors focused on the Federal Reserve and the potential for high-interest rates. Also, the biggest trading volume of Bitcoin is traded in USDT which are pegged to US dollars. For one, Bitcoin was created to address the inefficiencies that existed in fiat currencies like the US dollar and euro. Bitcoin and the US Dollarīitcoin and the US dollar have a relationship. Instead, the talk about halving will resume in the market in 20. Therefore, in our Bitcoin price prediction for 2021, halving is not of key concern because it is still so far. Historically, Bitcoin price tends to rise ahead of the halving event. Halving is a period when Bitcoin rewards for miners are reduced. In the coming years, the focus will shift to the next halving event that is expected to take place in 2024. This means that miners have about 3 million more coins to mine since it has a total supply cap of 21 million coins. Data shows that over 18 million BTCs have been mined already. But is that really the case? Will Institutions buy Bitcoin in 2022? Bitcoin Halving CyclesĪ key theme in the Bitcoin environment is that most Bitcoins have already been mined. Furthermore, Bitcoin’s relative stability during the migration from East to West may indicate that US institutions are absorbing the Chinese selling. Hong Kong-based crypto lender Babel said, “With Huobi completing its China exit last week, the selling pressure from Asia appears to be slowing down”. ![]() Many analysts attribute the geographic shift to China’s crackdown on cryptocurrencies. This makes sense when you consider the Bitcoin price underperformed during Asian hours in December. On the other hand, the withdrawals from Coinbase suggests U.S based investors have been net buyers over the last four weeks. Aggregate Exchange balances Source: Coinglass Exchange Balances +/- (30 Days) Source: CoinglassĪ logical conclusion is that Asian BTC holders have been liquidating holdings. In contrast, at the same time, over 10,000 BTC has left Coinbase. Furthermore, data from Coinglass shows massive deliveries into Binance of almost 58,000 BTC over the last 30 days. However, over 70,000 BTC have been sent to exchanges in the last two weeks, bringing the total to $1.71 million. The amount of Bitcoin held on exchanges dwindled from a peak of 2.09 million coins in February, to a 2021 low of 1.69 million in December. Still, the coin remains above the 100-week moving average. It then hovered around that level for a while and then resumed the bullish trend. The last time that Bitcoin moved below the 50 EMA was in June last year. This was a notable development because it rarely happens. Bitcoin Price Chart BTC and the 50-Week Moving AverageĪs the Bitcoin price declined, it managed to move below the 50-week exponential moving average.
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