Filbfilb, co-founder of trading platform Decentrader, predicted on December 27 that Bitcoin could aim for $333,000 by May 2022 if the United States Federal Reserve (Fed) provides a “ perfect storm” of low interest rates.
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You don’t have enough crypto for the 2022 bull run
After acting almost exactly throughout 2021, BTC/USD is likely to mount an impressive bull run over the next six months, if conditions remain the same.
Experts say the Fed is poised to make two rate hikes next year and potentially overvalued — but a sudden change in content could have huge consequences.
Filbfilb, after analyzing the Fibonacci sequence along with historical price action in previous halving cycles, finds that Bitcoin could rally beyond $300,000 as Fed officials cut rates.
“To run parabolic, we would likely need a perfect storm of Fed not being able to raise interest rates and soaring inflation, leading to Bitcoin’s flight to safety.”
The analyst attached a December 2018 chart of when BTC/USD bottomed out at $3,100 as proof of his price action prediction.
“Price moved as expected. You don’t have enough crypto for what will happen in 2022″.
BTC/USD Price Chart | Source: filbfilb / Twitter
It may sound surprising, but such a scenario – at least technically – is not too far-fetched.
The signs have been appearing continuously in the market, as more and more indicators point to a bullish breakout. Even the low time frame data is encouraging – for example, on Dec. 27, saw BTC/USD close a four-hour frame candle above the 200-day moving average for the first time in six weeks.
The last time that was achieved was in late September, at the start of the rally to generate the current all-time high (ATH) of $69,000.
BTC 4hr:
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
“BTC 4 hours: The candle closes in about an hour. It could be the first close above the 200-day MA in 6 weeks. The price action before the latest crossover looks similar.”
Stocks can win big – but not for long
On the macro front, commentators say the future looks positive for equities amid a cooling US dollar – even if interest 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 over the next couple of months as the post-coronavirus narrative is still unfolding. This allows the Fed to raise rates after QE (quantitative easing) is zero. After market experts recognize the recession, followed by the impact of high interest rates, the drop could be huge.”
Therefore, the impact of such a scenario on Bitcoin will depend on its correlation with equities and whether it can recover from a sudden downturn that Gammon suggested, similar to May. 3 in 2020 or not.
Despite that, a lot of investors still believe that a new ATH is yet to come for Bitcoin following the volatility in early December.
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Mr. Teacher
Theo Cointelegraph
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