Filbfilb, co-founder of the Decentrader trading platform, predicted on Dec. 27 that Bitcoin could target $ 333,000 by May 2022 if the Federal Reserve (Fed) offers a “perfect storm” of low interest rates.
You don’t have enough crypto for the 2022 Bull Run
After trading almost accurately in 2021, BTC / USD is likely to have an impressive bull run over the next six months if conditions remain the same.
Experts say the Fed is making two rate hikes over the next year and may be overvalued – but a sudden change in content could have huge repercussions.
Filbfilb, after analyzing the Fibonacci sequence along with historical price action in previous halving cycles, finds that Bitcoin could rise above $ 300,000 if Fed officials cut rates.
“To act parabolically, we would probably need a perfect storm in which the Fed cannot raise rates and inflation would soar, causing Bitcoin to flee to safety.”
The analyst attached a chart dated December 2018 showing the bottom of BTC / USD at $ 3,100 as evidence of his price development forecast.
“The price has shifted as expected. You don’t have enough crypto for what will happen in 2022.
BTC / USD price chart | Source: filbfilb / Twitter
It may sound surprising, but such a scenario is – at least technically – not too far-fetched.
The signs keep popping up in the market as more and more indicators point to a bullish breakout. Even the low timeframe data is encouraging – for example, on December 27, BTC / USD closed a four-hour frame candle above the 200-day moving average for the first time in six weeks.
The last time the rally started at the end of September was the current all-time high (ATH) of USD 69,000.
BTC 4 hours:
Candle closes in about an hour.
It could be the first close above 200mA in 6 weeks.
The price action before the last cross looked similar.
This time? pic.twitter.com/sMkFMEB9Ky
– Nunya Bizniz (@Pladizow) December 27, 2021
“BTC 4 hours: the candle closes in about an hour. It could be the first closing price above the 200-day MA in 6 weeks. The price movement before the last crossover looks similar. “
Stocks can win big – but not for long
On the macro front, commentators are positive about the future for equities amid a cooling US dollar – even if interest rates rise as expected.
George Gammon, author of the Rebel Capitalist Pro investment newsletter, is optimistic as the last week of 2021 begins.
“I think you could see the stock market rise over the next few months as the post-coronavirus narrative continues to unfold. This allows the Fed to hike rates after QE (quantitative easing) is zero. Now that market experts recognize the recession, followed by the effects of high interest rates, the decline could be enormous. ”
Hence, the impact of such a scenario on Bitcoin will depend on its correlation with stocks and whether or not it can recover from a sudden downturn proposed by Gammon, similar to May 3, 2020.
Even so, many investors still believe that after the volatility in early December, a new ATH for Bitcoin is still pending.
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