The price of Bitcoin has been recovering after a major slump into the low $30,000s. As of press time, BTC trades at $37,774 with a 1.9% profit in the last 24-hours and could see more gains in the short term.
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Bitcoin’s most recent recovery could be tied to the relief in the traditional market. At the time of writing, the S&P 500 Index records a +105 points or 1.44% profit in the 4-hour chart.
The cryptocurrency has displayed high levels of correlations with U.S. stocks and could continue to track them in the short term. In that sense, Bitcoin bulls could find backup on a sustained stock relief rally.
Data from Material Indicators shows some resistance, in lower timeframes, above BTC’s price current levels. Therefore, $39,000, and $40,000 have become important resistance levels that need to turn into support.
In case of further downside, Material Indicators records around $3 million in biding orders for Bitcoin near $36,000. These levels could operate as critical support on a bearish scenario, for lower timeframes, and must hold in order to prevent a re-test of previous lows near $33,000.
In the coming months, the bullish momentum could resume at full force, according to a report conducted by Finder. After consulting with a panel of 33 experts on the potential price scenarios for Bitcoin across multiple timeframes.
The consensus amongst these experts is bullish, a prediction that defies current market sentiment. The potential increase in interest rates by the U.S. Federal Reserve could operate as a headwind for Bitcoin. At least, this seems to be the dominating narrative for some market operators.
A Bitcoin Rally Before Another Multi-Year Bear Market?
As seen below, the experts have progressively flipped their bias from bullish for the better part of January, to neutral in the past week, and bearish for the week of February 6, 2022. The potential impact from the interest rates hike by the FED, the experts say, will remain a top concern for investors during the first part 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 that sense, over 50% of the interview panel believe Bitcoin could come out on top on an increasing interest rate scenario. The experts believe BTC’s price will peak at $93,717 in the next months, only to return to a $76,360 by the end of 2022.
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BTC’s price rally will be drive by more inflation. As NewsBTC has been reporting, Mike McGlone, Senior Commodity Strategist for Bloomberg Intelligence, has a similar point of view and has claimed the cryptocurrency will start to outperform stocks, and other risk-on assets. Finder’s panel added:
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.