A new prediction argues that Bitcoin (BTC) could aim for $333,000 by May 2022 if the US Federal Reserve provides a “perfect storm” of low rates.
Updating the oddly accurate price forecast on December 27, filbfilb, the co-founder of the Decentrader trading platform, came to a dizzying conclusion on next year’s BTC price action.
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Analyst: “You don’t have enough crypto” for the 2022 bull run
After acting almost exactly throughout 2021, BTC has the potential to generate massive profits over the next six months if conditions remain the same.
Experts say the Fed is poised to make two rate hikes next year and those are likely to be overvalued – but an unexpected change in content could have far-reaching consequences. .
For Filbfilb, the analysis of the Fibonacci sequence along with historical price action in previous halving cycles, Bitcoin could rise beyond $300,000 as Fed officials cut interest rates.
To get there parabolic, we’ll likely need a perfect storm of the Fed’s inability to raise rates (which may already be priced in) and inflated inflation, leading to a flight to safety. of BTC.
An accompanying chart, posted on Twitter in December 2018 when BTC bottomed at $3,100, shows how predictable the price action has run since then.
Filbfilb told Twitter followers: “Price is exactly where the prediction is.”
You don’t have enough crypto for what will happen in 2022.
As amazing as it sounds, such a scenario is – at least technically – not as far-fetched as one might think.
The signs are already pervasive in the market, as more and more indicators line up to claim a bullish breakout. Even the low time frame data is encouraging – for example, on December 27, saw BTC close a four-hour candle above the key 200-day moving average (MA) for the first time in six weeks. .
The last time the uptrend reached the same height was in late September, at the start of a rally that produced an all-time high of $69,000 today.
Candle closes in about an hour.
It could be the first close above the 200ma in 6 weeks.
Price action prior to the last cross looked similar.
This time? pic.twitter.com/sMkFMEB9Ky
– Nunya Bizniz (@Pladizow) December 27, 2021
Stocks can win big – but not for long
Commentators say that on the topic of macro movement, the future looks bright for equities amid a cooling US dollar – even if rates rise as expected.
George Gammon, author of the investment newsletter Rebel Capitalist Pro, is optimistic as the final week of 2021 begins.
“I think you could see the Stock Market go up in the next few months as the pandemic ending narrative continues,” he forecast.
This allows the Fed to raise rates after QE is zero. After the market studies and realizes the economy is in a recession, then sees the impact of higher interest rates, the drop can be huge.
Therefore, the impact on Bitcoin in such a scenario will depend on its correlation with equities and whether it can recover from a sudden downturn as Gammon suggested in a similar way to March. 2020 or not.
Despite that, popular opinion still believes that the peak is yet to come for Bitcoin after the volatility in early December.