Predicting Bitcoin price movement in the coming days after exceeding $ 51,000
Bitcoin breaking the $ 50,000 mark is the most anticipated time this month, as a rebound from there is the only sign of positive price action in 2022, a sharp rise despite trading just above $ 51,000.
Bitcoin back to $ 50,000
The news that US Senator Cynthia Lummis is planning to propose a new comprehensive bill next year had a significant impact on the crypto king yesterday. This bill provides an overview of how digital assets can be taxed and classified.
After a 5% price hike, BTC has finally recaptured the critical support level of $ 50,000. Interestingly, this event rekindled investor optimism.
Bitcoin price action | The source: TradingView
The drop in prices over the past few days has been a cause for concern, but after December 24th, investor sentiment turned positive for the first time in 9 days.
Bitcoin investor psychology | The source: mood
Coincidentally, a 9% increase in the past 3 days also helped the network achieve a relatively higher return on investment compared to more than 2 weeks ago.
This was a breath of fresh air for the 7.77 million Bitcoin investors who lost money due to the 18.26% drop in prices in December.
Percentage of Bitcoin investors losing (red) | Source: Intotheblock
If Bitcoin continues to move higher, long-term (LTH) owners and large wallet investors will be well compensated as they stand firm for months regardless of the events of November.
The HOLD mentality has not yet been destroyed
Proof of this is the continuously falling liveliness indicator, which shows that LTH does not dissolve positions, but only accumulates for HODL.
Bitcoin liveliness indicator | Source: Glassnode
Second, the supply of large wallets between 100-1k BTC is reaching an all-time high. The 3.85 million BTC they hold are valued at more than $ 196.2 billion, which is nearly 18% of the total supply.
Holder bitcoin offering has 100-1k BTC | Source: Glassnode
Although it looks like the market is bouncing back towards greed, it is still near fearful mood according to the fear and greed index. So don’t expect any drastic moves from investors or the market.
Bitcoin Fear and Greed Index | The source: alternative
Therefore, while the $ 50,000 reclaimed price is a big step forward, investors should wait and watch for a while as the uptrend has only just begun and it is not yet possible to determine how long it will last at this point can stop.
Bitcoin will exceed $ 54,000 this year, but next year …
In a recent CryptoRank tweet, only 6.3% of the total Bitcoin supply (1.3 million BTC) is held on exchanges. However, a drop in supply isn’t new news since Bitcoin’s halving in 2020.
????Crypto exchanges hold 6.2% of #Bitcoin Circulation supply@Coinbase – 583K BTC@Binance – 329K BTC@Bitfinex– 193K BTC@OKEx – 57K BTC@Bitflyer – 48K BTC@BittrexExchange – 39K BTC
Other exchanges – CZK 67,000 #BTC
– CryptoRank platform (@CryptoRank_io) December 23, 2021
Although BTC has shown positive price movements in the past few days as mentioned above, is this enough for a shiny year 2022?
Gareth Soloway, chief strategist at technical market advice platform InTheMoneyStocks.com, raised his concerns in a recent interview. It is worth noting that the negative factors for BTC followers are advantages for gold followers. Why so?
Bitcoin is arguably the best performing asset in 2021, but will that last until 2022?
Real estate performance since the beginning of the year | The source: Gareth Soloway
According to Soloway’s forecast, gold will outperform both Bitcoin and the stock market by 2022.
“I am optimistic about gold. I think gold will have its biggest performer in 2022 and you can see a nice wedge forming here on the chart. I suspect gold will rise and at least return to 2020 highs. ”
Source: Gareth Soloway
Additionally, Soloway claims that with rising inflation and the possibility of interest rate hikes, gold could hit its price target of $ 3,000.
“I’m even thinking of a potential price target of $ 3,000 for gold. Finally, you need to look at the inflation number as it won’t go back to 2%. The US Federal Reserve will tighten monetary policy, but at some point everyone will switch to gold. ”
Regarding Bitcoin, the trader said the way forward is rather ambiguous.
The source: Gareth Soloway
On the positive side, Bitcoin will increase significantly in the short term. Given the ongoing volatility, Soloway expects the crypto king to hit a high of $ 54,000 within the next 3 weeks. In the long run, however, this is very worrying.
“My bigger concern for BTC is what we see on the longer time frame chart.”
According to him, the price of the leading cryptocurrency will drop to around $ 30,000 or even $ 20,000 in 2022 over the next 6 months before exploding again due to historical price movements.
“I still insist that BTC will climb back to $ 30,000 and even $ 20,000 by 2022.”
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews