When Bitcoin doubled from $5000 to $64000 in two years, there was little doubt it was headed to the moon, perhaps $100000 in numeral terms. However, the price dropped significantly, to trade below $35000. The price is on a downtrend since the beginning of the month when it traded at $47000. Bitcoin is worth $40000.
The buzz around the Bitcoin 2022 Conference was not enough to boost the fortunes of Bitcoin investors. So how will Bitcoin fare in 2022? Will it smash the $100000 by 2025?
Let’s find out.
As per Coincodex projections, the current Bitcoin sentiment is bearish. Their fear and greed index shows that the traders are extremely fearful which could further boost the selling pressure especially if panic selling enters the market. That said, the bullish sentiment is 28% meaning there is a substantial possibility that the market could head north. For instance, both SMA 100 and EMA 100 are giving a bullish signal. However, investors will want to wait for more bullish signals as the current 9 versus 23 in favor of bearish signals does not exude much confidence.
Before opening a trade, you should be keen on the key areas. Coincodex marks $39224 and 38, 538 as key support levels for investors looking to ride the bullish trend. The key resistance levels are $41044 and $42179.
The site also offers short-term crypto forecasts. According to the site, Bitcoin is projected to hit $36235 and grow to reach $38924 by mid-May.
Cryptopredictions.com is a site that has been featured in the latest Analyticsinsight predictions and provides fairly accurate predictions on the Bitcoin market. The comprehensive short-term and long-term BTC forecasts are based on current prices and historical data.
According to the site’s predictions, Bitcoin could reach $50000 as early as June. However, the uptrend could be short-lived as the bears take charge of the market until mid-2024. After hitting a high of $50104, the digital coin is projected to dip and find support around 33 693.338.
CryptoPrediction.com expects the downtrend to extend to 2023, with a coin averaging $39 409.65 in January. As per the predictions, the price dip will be gradual and uninterrupted from a maximum price of $49 262.063 in January to $27, 001.718 in December – the lowest price in the year. The forecasted average price in the last month is $31766.727.
2024 could shine a ray of hope for bulls 8f the site’s projections are anything to go by. The value of Bitcoin might dip to $25674.057 by the beginning of 2024. Unlike the previous year, we may see the price rise steadily and cross the $50000 again in August 2024. The price could reach $57561.34 by December and average $46049.072 in the final month.
In 2025, the average monthly price of Bitcoin is expected to hit $50 000. The projected lowest price in January is $40316.571 l. The predictions don’t expect Bitcoin to break below this support level throughout the year. By the end of the year, the Bitcoin value could reach $60,469.692.
Finder’s Expert Panel Predictions
Finder crypto predictions are based on opinions from in-house and external crypto experts. They give their sentiments every two weeks on whether they are bullish, bearish, or neutral.
According to the 33 fintech specialist panel, Bitcoin is expected to peak at $93717 in 2022. However, the price will dip to $76 360 by the end of the year. The panel expects the price of bitcoin to increase significantly to reach $$192 800 by 2025. This prediction is 7% lower than the $206351 predicted in October 2021.
The conservative predictions compared to October forecasts result from potential interest rate hikes, which could hurt the crypto market. For instance, Gavin Smith, the CEO of Panxora Group, predicts Bitcoin to hit $70000 by the end of 2022. However, over half of the panelists do not think the interest rates will affect the price of Bitcoin.
Other panelists include Daniel Polotsky, Coinflip Founder, Fred Schebesta founder of Finder, and Iwa Salami, the founder of Finder.
Additional Expert Predictions
- Jurrien Timmer, Fidelity Investments director of global macro, predicts that the price of Bitcoin could reach $100000 by 2023.
- Similarly, Token Metrics founder Ian Balina expects the price to range between $100000 and $150 000 eventually.
- Mathew Hyland, a seasoned technical analyst, expects the price of BTC to hit $100000 by 2022.
Fundamental Analysis: Price Movers on Bitcoin Road Map
Bitcoin has lined up projects that could enhance its use cases and make it more endearing to users.
Below are the most notable developments.
Bitcoin is set to undergo various upgrades, albeit gradual. The most recent upgrade is Taproot, launched in November 2021. The new upgrade offers new tools for developers to scale and build the lighting network and use block space. However, it might take time before wallets, apps developers, and exchanges benefit from the new features.
Bitcoin Legal Funds
The pioneer cryptocurrency is decentralized, meaning it has no centralized representatives or advocacy groups. Therefore, developers and advocacy groups have no protection. The legal fund proposed by Jack Dorsey is yet to reach the final stage. But once established, it will give developers more confidence in creating new assets while the fund handles legal battles.
While Bitcoin launched the Lighting Network in 2015, it was not until 2017 that the first transaction took place. In 2021, the network’s locked Bitcoin and connected nodes grew by 300%. The increase of locked Bitcoins and nodes enhances the network’s scalability and usefulness in supporting Bitcoin transactions.
Also known as discrete log contracts (DLCs), Bitcoin Oracle is an actively-developed feature used in the new Bitcoin version. The first demo went live in January 2020. The feature will enable the ecosystem to use real-world data within smart contracts.
LNBits allow developers to create and distribute applications based on Lighting networks such as events tickets and content paywalls. The project is in the beta phase and gives bitcoin the same smart contract capability as other cryptos, including revenue sharing and payment splitting.
Other major factors that will affect the price of bitcoin include;
- Media influencers such as Elon Musk investing in Bitcoin could affect the price significantly. According to crypto launchpad, more people are likely to rally behind the cryptocurrency community. The demand is likely to grow if the community is optimistic and promotes holdling as more investors rush t get a piece of the coin.
- Adoption cryptocurrency regulations
- Bitcoin halving, which is set to happen in 2024. Mining rewards will drop from 6.25 BTC to 3.125
- Mainstream adoption of Bitcoin and blockchain by giant tech companies such as PayPal and Tesla
- Economic instability due to war like in Ukraine and Russia
According to the chart, the price is set for an uptrend. Bitcoin is retracing at the 78.6% Fibonacci level, a strong reversal point.
The reversal comes after a rally emanating from a triple bottom chart pattern. Essentially, this means the pullback is happening on an already established uptrend. The pullback finds support at the Fibonacci levels. We can expect the price to resume the rising trend.
However, the uptrend might come after RSI reaches the oversold area. The price action is currently dipping, as shown by the declining moving average.
Since its inception, the Bitcoin price has experienced a roller coaster of ups and downs. The Satoshi coin price has been declining since the beginning of the year. The good news is that the price is poised to resume the uptrend. If bulls steer the market upwards, it could smash the $65000 all-time high mark on its way to $100000, as predicted by experts.
Source: Plato Data Intelligence: PlatoData.io