Bitcoin’s rally to recover losses is hampered by resistance levels of $ 48,000 and $ 49,000.
According to prominent crypto trader Michael Poppe, potential Bitcoin investors would do well to study current levels of resistance and near-term support. Resistance levels are points on a bitcoin price chart where the upward movement in price is hampered by a tendency to sell the asset. The owner of the asset can choose to sell because once the price hits the resistance level, it can fall again. Likewise, a support level is a level at which buyers will buy before the price rises above that level. Good trading opportunities arise when support or resistance levels are broken.
Poppe believes that bitcoin needs to break through resistance levels of $ 48,000 and $ 49,000 to break above $ 51,000. Current support levels of $ 46,000 and $ 47,000 provide a solid base to recover from recent losses and initiate an uptrend. Poppe believes that if Bitcoin loses the support levels of $ 46,000 and $ 47,000, it may find support of $ 41,000 to $ 42,000. BTC fell between December 27, 2021 and January 2, 2022 and fell to a low of $ 45,678 in the process.
Bullish predictions for 2022 for BTC
The CoinMarketCap.com cryptocurrency community is known for its accuracy in predicting the price of bitcoin. The community has been 90.75% accurate in the past. They now expect bitcoin to trade at $ 52,000 in January 2022. A total of 77,201 community members are predicting a minor correction to $ 51,560 in February. As reported by BeInCrypto, BTC’s RSI, which is an indicator of momentum, suggests a neutral trend.
Nexo founder Antoni Trenchev has revealed he is bullish on bitcoin, given its rally of nearly 1,000% in 2020 and 63% in 2021. He believes it is expected to hit $ 100,000 in here the end of the year due to institutions “building their treasury, filling it with bitcoin”, and due to larger macroeconomic trends that allow crypto to be a hedge against inflation and “gold 2.0. ”Trenchev is impressed with how far bitcoin has come in the 13 years since its inception as a store of value and medium of exchange, and is convinced that it can boost struggling economies.
Not everyone is optimistic
Carol Alexander, professor of finance at the University of Sussex, said she expects bitcoin to drop to $ 10,000 in 2022. She is bearish because she believes bitcoin has “no fundamental value” and serves as a “toy” more than an investment. She uses the drop in bitcoins to $ 3,000 from $ 20,000 in 2018 as a starting point for her argument.
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