Bitcoin: What experts think of BTC’s price trajectory in 2022

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Bit­coin [BTC] has been wit­ness­ing some tur­bu­lences in the last few days. The price of the king coin and oth­er cryp­tocur­ren­cies dropped on 5 Sep­tem­ber. At press, the king coin was chang­ing hands at $19,307 after not­ing a 2.99% increase over the last day. How­ev­er, in the past sev­en days, it declined by 3.85%.

So why bullish sentiments?

In this regard, Bloomberg ana­lyst Mike McGlone stat­ed, “Bit­coin is a wild card that’s ripe to out­per­form when stocks bot­tom, but tran­si­tion­ing to be more like gold and bonds.”

Fur­ther­more, as per the ana­lyst, it is “ready” to out­per­form once tra­di­tion­al mar­kets reach their bottom. 

McGlone, via his recent post, not­ed that the stock mar­ket direc­tion would be deter­mined by the U.S. Fed­er­al Reserve’s tight­en­ing. He fur­ther claimed that BTC remains a wild­card that could defy the trend. Addi­tion­al­ly, many ana­lysts and investors believe and agree with McGlone.

What about the bears?

Just like some find BTC bull­ish, there are yet some who believe that BTC stays risk and bear-prone. Bit­coin, at press time, was try­ing to cross its psy­cho­log­i­cal lev­el of $20,000. Fur­ther­more, risk aver­sion once again wash­es through the mar­kets, accord­ing to Craig Erlam, an ana­lyst at Oan­da, a glob­al com­pa­ny offer­ing lead­ing cur­ren­cy solu­tions for both retail and cor­po­rate clients.

Giv­en that the June lows, which were around $17,500, are the next impor­tant lev­el below this one, a sub­stan­tial breach at this time may be quite harmful.

Craig’s bear­ish view is shared by oth­er ana­lysts, too. Naeem Aslam, an ana­lyst at bro­ker Ave­Trade says, 

“Bitcoin’s dai­ly range has nar­rowed mas­sive­ly, and this is giv­ing us an indi­ca­tion that a mas­sive capit­u­la­tion is coming.”

Aslam gave jus­ti­fi­ca­tions to sup­port his asser­tions. Addi­tion­al­ly, traders have been defy­ing sell pres­sure to main­tain ris­ing cryp­tocur­ren­cy prices. 

Addi­tion­al­ly, accord­ing to Reuters, investors and exchanges may run into some dif­fi­cul­ties due to BTC’s cur­rent price movement.

This has seen the top cryp­tocur­ren­cy sta­bi­lize in the $17,000–$20,000 area since July. 

This is due to the price trend show­ing a sharp decline in BTC’s volatil­i­ty. Thus, ren­der­ing it “bor­ing” to investors who may soon turn to its com­peti­tors like Ether.

In the mean­time, Bloomberg recent­ly report­ed that investors have been “falling into hiber­na­tion” amid the pro­tract­ed cryp­to winter. 

This is because BTC has already been reg­is­ter­ing alarm­ing­ly low on-chain activ­i­ty. The coin has also been reg­is­ter­ing sig­nif­i­cant with­drawals from con­trolled exchanges.

As tricky as it can get

Despite analysts’ high price projections, it has proven difficult to anticipate the short-term price of BTC. However, the king coin is likely to remain under pressure as long as inflation stays high and the Federal Reserve continues to tighten financial conditions. This may thus reduce the demand for risky assets.

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