empty
 
 
29.01.2023 02:03 PM
Crypto experts' predictions for bitcoin's future value are becoming more cautious.

This image is no longer relevant

On the 4-hour TF, it is evident that bitcoin is confidently advancing to the level of $24,350. Remember that the expansion started with the release of the US inflation report a few weeks ago. Of course, the likelihood that the Fed will tighten monetary policy by 0.5% in February is reduced, rather than this report itself, which is most likely what sparked the rise of bitcoin. After all, we recall that the euro and the pound have also recently shown significant growth and refuse to adjust in principle. Thus, we can even say that the cryptocurrency market reacts quite logically. It's logical, but not really.

It is a fact that the Fed keeps raising interest rates. But keep in mind the QT program as well. Remember the period of high-interest rates. Remember those major and institutional investors currently find it more beneficial to purchase equities and indices that have lost value, government bonds with higher yields, or routine bank deposits. The US is experiencing rapid deflation, which is expected to reach 3% by year's end and 2% by year's end. However, an "above average" return can be attained during the following five to ten years. Therefore, all of bitcoin's recent growth is "retail-speculative." What took place? Some market participants believed that the time for the Fed's monetary policy to gradually tighten had already arrived and that the regulator would soon end this "outrage" completely. As a result, they started to buy. However, this does not imply that every player ran after them.

This image is no longer relevant

Of course, the predictions of different crypto specialists are still very hopeful, but not as much as before. For example, investor Bill Tai believes that while bitcoin may rise, a drop below $12,000 is possible before a new round begins. The strategic director of CoinShares, Meltem Demirors, predicts that the price of bitcoin will not rise above $30,000 this year. Although purchases are similarly modest, he thinks that sales are already drying up. According to Anthony Scaramucci, CEO of the financial firm SkyBridge, the market will gradually rebound this year, and within two to three years, bitcoin will surpass the $100,000 threshold. As you can see, the only future possibilities are $100,000. Although we think a new "bullish" trend in bitcoin is possible, we don't think it will begin in 2023.

The first cryptocurrency's rise continues with a target price of $24,350 over a 4-hour period. A rebound from the level of $24,350, in our opinion, will signal the end of any long positions and the start of new short positions with targets of $18,500 and $17,582. Although there is a chance that Bitcoin may enter a new short-term "bullish" trend, the underlying background should ideally gradually improve. And just now, we are not noticing this.

Paolo Greco,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback