Bitcoin is still on the rise, but it’s already surpassed its historical price highs. What will happen to Bitcoin in 2022 and beyond?

Bitcoin price fell short of analysts’ $100K target, but what about 2022?. The cryptocurrency has been on a bull run since the beginning of 2018, and many are asking how long it will continue. Read more in detail here: why did bitcoin spike.

Bitcoin price fell short of analysts’ $100K target, but what about 2022?

Bitcoin (BTC) is expected to finish 2021 well behind experts’ estimate of $100,000. Jesse Powell, the CEO of Kraken, who previously forecasted a $100,000 price objective for Bitcoin, is still confident in the long run, but he would not rule out a dramatic decrease in the near run. 

The adjustment in the US Federal Reserve’s monetary policy is one of the downsides that might put pressure on Bitcoin in the near run. The Fed stated on Dec. 15 that it will accelerate the winding down of its bond-buying program, as well as three interest rate rises in 2022.

Bitcoin price fell short of analysts’ $100K target, but what about 2022?View of the cryptocurrency market on a daily basis. Coin360 is the source of this information.

When the Fed raises rates three times or more, according to Sam Stovall, chief financial analyst at CFRA Research, the S&P 500 has traditionally posted negative returns over a 12-month period.

If history repeats itself, Bitcoin may struggle to break free in 2021 owing to its close association with the S&P 500 at different periods. It’s tough to say if investors will continue to acquire Bitcoin to protect their portfolio from increasing inflation if the risk-off attitude leads to profit-booking.

With all of this uncertainty, let’s look at the charts and do a long-term Bitcoin analysis to see where the crucial levels are.

BTC/USD

The rapid increase in bitcoin in 2017 boosted the relative strength index (RSI) beyond 96, signaling enthusiasm among traders. Vertical rallies are seldom long-lasting and are generally followed by a severe correction or consolidation phase. After the bull market ended in 2017, this is what occurred.

Bitcoin price fell short of analysts’ $100K target, but what about 2022?Monthly chart of BTC/USD. TradingView is the source of this information.

Until the breakthrough over $20,000 in December 2020, the BTC/USD pair remained locked below the December 2017 highs. This indicates a three-year long phase of base-building.

Profit-booking set underway after the pair’s rapid surge in 2021 pushed the RSI over 91 in March. In contrast to 2017, bulls defended the 20-month exponential moving average ($37,281) with vigour.

This indicates that traders were accumulating on the dips as sentiment remained favorable. The pair then rallied to a fresh all-time high of $69,000, but bulls were unable to maintain the gains. This demonstrates that traders are profiting from rallies.

The steep pullback has pushed the price back near the 20-month exponential moving average (EMA), and the RSI is showing symptoms of a bearish divergence, suggesting that the bullish momentum is fading.

The pair might collapse to the important support level of $28,800 if bears dig and maintain the price below the 20-month EMA. The bulls must defend this level since a break below it might lead to a lengthy period of base-building.

The pair, on the other hand, might retest $69,000 if the price climbs from its present level. The return of the uptrend might be signaled by a break and closure above this barrier.

Bitcoin price fell short of analysts’ $100K target, but what about 2022?Weekly chart of BTC/USD. TradingView is the source of this information.

On two instances, the bulls were able to lift the price over $64,899, but they were unable to maintain the higher levels. The aggressive bulls that bought the breakout might have been trapped, culminating in an extended liquidation.

Bears are trying a return, as the 20-week EMA ($52,016) has begun to move down gradually and the RSI has slipped into the negative zone. The bulls tried to defend the 50-week simple moving average (SMA) ($47,709) but were unable to push the price above the 20-week exponential moving average (EMA).

This might have prompted further selling, and the bears are now attempting to lower the price to $39,600, the next major support level. The bulls must defend this level because if it is breached, the pair might fall to $28,732.

Such a move might postpone the start of the second leg of the uptrend, keeping the pair trapped in a range between $28,732 and $69,000 on the downside.

Bulls will make another effort to clear the $64,899–$69,000 overhead resistance zone if the price rises from its present level and breaks over the 20-week EMA.

If they succeed, positive momentum may speed up, and the pair may begin its trek northward into the $100,000–$109,000 price zone, where the rally may confront stiff headwinds.

A break and closure below $28,732 might signal the start of a bear market, with the next major support level below $20,000.

Bitcoin’s annual moving average is being tested as a’small miracle’ to reach $100K before Christmas is required.

Bitcoin price fell short of analysts’ $100K target, but what about 2022?BTC/USD chart on a daily basis. TradingView is the source of this information.

For the previous week, the pair has been falling within a downward channel. The RSI is in the negative zone, and both moving averages are trending down, suggesting that bears are in charge.

If the price drops below the current level or the 20-day EMA ($50,054), it indicates that traders are selling on rallies and sentiment is still adverse. This might push the price down to the intraday low of $42,333 set on December 4th.

Bulls must defend this level because if it is breached, bears will seek to drive the price below the channel’s support line. If they succeed, the selling may get much more intense.

If bulls fail to drive the price above the 20-day EMA, the slide might continue to $28,800.

In contrast, if the price increases and breaks above the channel’s resistance line, it may indicate that selling pressure is easing. The pair might next ascend to the 50-day SMA ($56,524), which would be a significant resistance level.

To signal the start of an uptrend to $60,000, bulls must lift the price above the 50-day SMA and keep it there. This level may operate as a significant resistance, but if it is breached, the rally might resume and retest the all-time high.

The author’s thoughts and opinions are purely his or her own and do not necessarily represent those of Cointelegraph. Every investing and trading choice has risk, so do your homework before making a decision.

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