Do you know that Bitcoin will finally hit $ 100,000 in the spring of 2022 as market cycles get longer? Are the very best altcoins already preparing to go into the new altcoin season and show profits early next year?
The initial reason for this is the closing of the BTC weekly candle above 50 WMA and at the same time above $ 50,000.
This is indeed a very good sign, and the predictions that we will present next also indicate the chances of seeing cryptocurrencies rise in January. How this can happen, we will tell you in this article.
“Don’t be jealous, believe in yourself and buy Bitcoin.”
This is the Christmas greetings from Ricardo Salinas Pliego, the third richest person in Mexico. And he is not one of the financial elites who warn about the need to get rid of cash and transfer it to assets where there is value. So, Ray Dalio said in his interview that cash is dying and others will come to replace it, one of the alternatives will be bitcoin.
Of course, Dalio was less optimistic, he pointed out that Bitcoin will never catch up with gold in terms of capitalization and will not even reach the price of $ 1 million. However, he himself once again recalled that for his own purposes he invested an unnamed part of the funds in the first cryptocurrency.
With such a steep promotion from two billionaires at once, Bitcoin simply could not help but please and close the week above $ 50,000. Therefore, the cryptanalyst TechDev has already noted that such a closure confirms the scenarios of 2013 and 2017.
#BTC closed back above the 50W SMA as I’d hoped.
Held 1.472 so far just as 2013 and 2017 did after their rejections near 1.618 following first major peak.
— TechDev (@TechDev_52) December 27, 2021
And the next level for him is the 20-week moving average, now it is $ 53,000, and if we go higher, we will get another confirmation of the market reversal back to growth. And the current situation is also invested in his long-term forecast, according to which we have not yet reached the peak, but are in the zone of a large correction.
The PlanB analyst is less optimistic and has reasons to do so.
Imagine thinking a model that has stayed within 1 standard deviation band for 3yrs has failed. IMO we are in the exact same spot as March 2019 when I published S2F model: at the low end of the 1sd band. DYOR. Look at the chart. Your choice. pic.twitter.com/b9ebjY886k
— PlanB (@100trillionUSD) December 25, 2021
Last month, one of his models broke, and now he officially admitted that Stock to Flow, which for several years confidently predicted the bitcoin rate, is dead today. True, he is ready to give her one last chance, because when the model was first presented to the general public, it also looked like a mistake.
And then the price started to follow it.
Many factors are behind Bitcoin’s rise. Here the week closes above $ 50,000, but this is only the first signal for a reversal and the situation may change radically if we do not pass the next important resistance, which is now forming a local maximum in September and a 21-week moving average.
Then the picture on the market may change dramatically, and then it will be possible to predict a return to the price of $ 42,000. The chart is now bearish market in 2018 and we indicated how the bitcoin price received support from the 50-week moving average, but then could not return above 21 weekly and the market continued to fall.
This is just an opportunity and the market does not need to further fall, but such a scenario exists and should be kept in mind in case Bitcoin shows weakness. And there is another wake-up call, this year the market has been steadily declining when futures traders are kicked out of position.
Leverage for #Bitcoin is now sitting at its highest level it has been since the data is available. So the leverage that has been whipped out at the beginning of December has more than recovered by now. Funding rates continue to be slightly positive at around 0.01. pic.twitter.com/zh2zHqvb3T
— Jan Wüstenfeld (@JanWues) December 23, 2021
Leverage is at its maximum again, so the market may want to weaken again.
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