Friday, December 8

What to expect from Bitcoin in 2022?

2021 was a great year for the crypto market, despite the steep ups and downs it went through. Now Bitcoin is starting 2022 with some uncertainty for the short term, but still defending a strong major uptrend.

At the time of this writing, BTC is trading at $ 48,079.09, accumulating a slight gain of 1.55% in the last 24 hours, but maintaining a loss of 6.27% during the last 7 days.

It will be a difficult start to the year for the largest cryptocurrency, due to the lack of determination on the part of the buyers. But, will this behavior determine what is coming for the rest of 2022? Find out below.

In the short term it seems that we may have some problems, while BTC balances on exchanges increase slightly. Five of the technical oscillators that CryptoQuant reviews, three are currently bearish.

Despite this, the metrics that track the behavior of large investors (such as miners and whales) are bullish. This tells us that these participants expect higher profits during this new year.

Weekly review of Bitcoin metrics. Fountain: CryptoQuant.

On the daily chart of BTC we see short-term negativism and uncertainty drawn. The price has been locked in a strong side, with resistance at $ 51,200 and support at approximately $ 45,650.

Bitcoin has just defended support again, but the poor determination of buyers tells us that we can still see the crypto market in trouble during these first weeks of 2022. The next support is at $ 43,116.

We cannot rule out a possible strong rally yet, but it would only be really relevant if resistance at $ 51,200 is breached, which would clear the ground to $ 58,960.

Possible increased capital flow from institutional investors to Bitcoin in 2022?

In 2021 we saw how venture capital from institutional funds flowed in large amounts into the cryptocurrency market, reaching a maximum of $ 30,000 million, breaking any record from previous years, and showing great interest from these investors in this. type of assets.

Without a doubt, this is a sign that large capitals are seeing great opportunities in this market.

Seeing the great force that this trend brings, it is extremely likely that it will continue during 2022, which will undoubtedly continue to benefit Bitcoin.

Let’s remember how in October 2021, the launch of a Bitcoin ETF approved by the SEC, sponsored the all-time high for this cryptocurrency.

ETFs are aimed at investment funds and US firms that were restricted from trading with BTC, due to the regulatory framework they must follow.

More providers of these types of products continue to seek approval, which would continue to promote the exposure of crypto assets on the great American stock market.

Venture capital management companies have invested more than $ 30 billion in the crypto market.  Source: CryptoQuant.
Venture capital management companies have invested more than $ 30 billion in the crypto market. Fountain: CryptoQuant.

Market flooded with liquidity

In addition to the growing interest of institutions to invest in cryptocurrencies, much of the incredible monetary liquidity that exists (mainly in dollars) is still looking for where to invest, a factor that could benefit this market.

As a result of the severe crisis that caused the pandemic, it is well known how different central banks began to inject liquidity into the markets to avoid worse losses. However, now the amount of money in the market is greater, while the supply of goods and assets remains the same, or even less.

With a very scarce Bitcoin, a growing demand, and a lot of money looking to be invested, only one thing can happen.

Forecast for BTC in 2022

To finish this article, let’s make a price forecast, based on an analysis of the monthly BTC vs USDT chart.

From this time frame we see that the price has managed to stay solidly bullish in recent months, despite the turbulence seen in mid-2021.

We can also observe how a double top was created on the resistance at $ 64,895. This chartist figure announces a possible change in trend, but it is only confirmed once the neckline is crossed. In this case, that neck is at $ 35,000.

At the moment we continue to see a totally bullish Bitcoin, so the most likely scenario for 2022 is to continue setting new all-time highs.

The big price reversal in the middle of the year appears to have bottomed out at 50% Fibonacci. Now a momentum is developing, which could well seek $ 100,000 in the medium term (-61.8%).

We saw how the price closed 2021 with a relevant bearish force, but leaving rejection on a support at $ 43,834. That rejection may be the sign of the beginning of a new rally.

It is not yet confirmed that the bulls have regained control. We may see Bitcoin in trouble during these first weeks of 2022.

But, the big picture tells us that the medium / long-term odds remain on the buyers side.

What to expect from Bitcoin in 2022 ?.  Analysis of the monthly graph BTC vs USDT.  Source: TradingView.
What to expect from Bitcoin in 2022 ?. Analysis of the monthly graph BTC vs USDT. Fountain: TradingView.

All our publications are informative, so in no case should they be followed as investment advice.