From a technical point of view, the “bullish” trend for bitcoin is broken. Although the absolute majority of cryptocurrency market experts do not believe in this. However, the BTC price has consolidated below the ascending trend line, so we expect a new drop in the cryptocurrency exchange rate. We also remind you that all the forecasts that speak about the growth of bitcoin, absolutely easily and calmly may not come true. Just recently, there was a resonant story: PlanB analysts and its Stock-to-flow model made a mistake and the level of $ 100,000 in 2021 was not taken. The price did not even approach it, so it is hardly possible to talk about a small error in this forecast. The analyst himself, who is quite well-known and popular on the web, immediately stated that his model was a little wrong, but he expects that this level will be reached in the first three months of next year, and in the future bitcoin may rise to $ 288,000 in the future. Therefore, in principle, absolutely any forecast does not guarantee anything to traders. Therefore, we still recommend carefully considering the technical aspects of bitcoin’s movement.
Mike McGlone: Bitcoin is still in a bull market.
Now let’s pay attention to the forecast of Bloomberg’s leading strategist Mike McGlone, who stated that bitcoin will not fall below $ 45,000 and that this is the new “bottom” of the market. According to a world-renowned expert, in the near future, the crypto asset will again enter the growth stage and reach the level of $ 70,000 per coin. He also recalled that by the end of 2021, bitcoin had risen in price by 66%. “Bitcoin seems to be heading towards $100,000. Adjusted and updated bull market – this is the state bitcoin is in by 2022. We consider the growth of cryptocurrencies as a matter of time,” McGlone said. But trader Tom Weiss at the same time said that bitcoin will drop to $ 20,000 in the near future. According to Weiss, bitcoin is trying to gain a foothold below the 50-week moving average line. And if this happens, the quotes may sink to $ 20,000. However, Weiss also noted that this scenario could be implemented in 2024 when a new halving will occur in the bitcoin network. The trader also stated that he hopes that this scenario will not be implemented. Thus, there is no unambiguity in the forecasts of highly respected crypto experts. And if so, then there is no guarantee that BTC will continue to grow while the Fed has begun to tighten monetary policy and cut the QE quantitative stimulus program.
On the 24-hour timeframe, the quotes of “bitcoin” are fixed below the ascending trend line, so the “bullish” trend is broken. Consequently, the fall may continue. The nearest targets are the levels of $43,852 and $40,746. It is impossible to form a descending trend line now since there is simply no second reference point: the downward movement is very strong. However, we pay attention to the rebound from the level of $ 51,350, which is a sell signal.
The material has been provided by InstaForex Company – www.instaforex.com