Bitcoin’s price has started rising following a severe drop into the low $30,000s. As of press time, BTC is trading at $37,774, up 1.9 percent in the last 24 hours, and could see further rises in the near future.
The recent bounce in Bitcoin could be attributed to relief in the traditional market. In the 4-hour chart, the S&P 500 Index is up +105 points, or 1.44 percent, at the time of writing.
The cryptocurrency has shown strong correlations with US markets and may continue to do so in the immediate run. In that sense, a persistent stock relief rally might provide support for Bitcoin bulls.
Data from Material Indicators reveal some resistance above BTC’s current price levels in lower timeframes. As a result, $39,000 and $40,000 have become significant resistance levels that must be converted into support.
In case of additional decline, Material Indicators recorded approximately $3 million in bids for Bitcoin, near $36,000. In a bearish scenario, these levels could act as crucial support for lower periods and must hold in order to prevent a retest of prior lows near $33,000.
According to a Finder analysis, the bullish momentum could continue in full force in the next months after talking with a panel of 33 experts on probable Bitcoin price situations across multiple timeframes.
The experts’ consensus is positive, a prediction that defies current market sentiment. The possibility of increasing interest rates by the United States Federal Reserve could act as a headwind for Bitcoin. At least, this appears to be the dominant story among some market participants.
As can be seen in the chart below, the experts’ bias has shifted from positive for most of January to neutral in the last week and negative for February 6, 2022. The prospective impact of the FED’s interest rate hike, according to experts, will be a top concern for investors during the first half of the current year.
(The) first half of 2022 will be dominated by concerns over higher interest rates, which will impact all risk assets including Bitcoin. We wouldn’t be surprised to see Bitcoin decline a further 30% from current levels.
In this regard, more than half of the interview panel believes Bitcoin will outperform in an escalating interest rate situation. Experts predict that the price of BTC will peak at $93,717 in the next months before falling back to $76,360 by the end of 2022.
More inflation will cause BTC’s price to rise. As previously reported by NewsBTC, Mike McGlone, Senior Commodity Strategist for Bloomberg Intelligence, believes cryptocurrency will begin to outperform stocks and other risk-on assets. Added a Finder’s panel:
It is possible that the asset bubble the Fed created by keeping interest rates near 0% for over a decade may spill over into Bitcoin. However, the cryptocurrency has the gold-like fundamentals and trust to weather the storm better than its peers.