A strategist and trader is currently bullish on Bitcoin as 2022 is just beginning, pointing to two major catalysts that could spark a resurgence of the crypto king.
“The tax cut is over. The forced sale situation in China also ended. The pressure to sell will decrease tenfold. The Bitcoin price will recover. ”
According to Svenson, market participants who lost money this year are selling their Bitcoin holdings to cut taxes. The trader added that the “tax collection” ended on December 31st, which could ease selling pressure.
On the subject of China being forced to sell coins, Svenson says mention to supply BTC to Huobi users of the Hong Kong Stock Exchange. In late September, Huobi announced that it would delete Chinese users’ accounts by December 31, 2021 in order to comply with local laws and regulations, such as: Bitcoin magazine reported.
Svenson claims that selling pressure from Chinese users converting crypto to fiat will soon go away.
Looking at Bitcoin’s long-term outlook, Svenson sees BTC trading in a large ascending triangle, indicating a very bullish market structure.
“If you look at this chart, then as a professional investor you will generally see a positive chart. Ascending structure, higher floor, total demand increased. Retailers just get too emotional with most of the altcoins holding up. Don’t worry about the noise out there. ”
The source: Kevin Svenson
Analyst Benjamin Cowen says Bitcoin has most likely hit bottom, although many traders still view this as a more bearish price move.
In one Strategy meeting New, Cowen says that the valuation of BTC in assets other than the U.S. dollar can sometimes provide different information.
Instead of looking at Bitcoin in US dollars, the analyst is looking at BTC in the stock market using the S&P 500. According to Cowen, Bitcoin has reached an important level of support when combined with the S&P 500.
“But if you look at Bitcoin versus the stock market, the price is really testing the levels tested in September. So some people are waiting to say, ‘Okay, we need to get back to the levels. That’ and you might be right. Most likely, the price will go down to $ 40,000 and $ 42,000.
Anything can happen with investing in general. All models can be wrong. Bitcoin could plunge to $ 40,000 or all the way up to $ 55,000 tomorrow. What is interesting about this analysis is that BTC is actually testing the levels it reached in September. ”
Source: Benjamin Cowen
Cowen points out that when comparing the stock market to the M2 money supply, it appears to be trading sideways rather than in a straight up line. On the same principle, the analyst says that Bitcoin is undervalued and it is time to make another uptrend.
“With all that money printing and recent inflation, stocks may not necessarily be worth more because they’re more fundamental, but the US dollar is worth less. This is probably a measure of some kind of inflation, and we can relate it to Bitcoin, to say … On that basis, BTC tests where the price was in September. ”
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