Bitcoin investors got a scare at the beginning of this year as the value of the digital currency continued to fall. As of February 2022, Bitcoin is trading at $48,509.38 recording a 5.24% profit in the last 24 hours. Could this be a sign that the currency is on it’s road to recovery?
The alleviation in the traditional market may have contributed to Bitcoin’s recent resurgence. 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 U.S. markets and may continue to do so in the near future. In that sense, a persistent stock relief rally might provide support for Bitcoin bulls.
Material Indicators data shows some resistance above BTC’s current price levels in lower periods. As a result, $39,000 and $40,000 have become significant resistance levels that must be overcome.
On the other side of the coin, Bidding orders for Bitcoin near $36,000 total around $3 million, according to Material Indicators. In a bearish scenario, these levels could act as crucial support for lower periods, and they must hold in order to prevent a re-test of prior lows near $33,000.
According to an analysis by Finder, the bullish momentum could continue in full force in the next months. After speaking with a panel of 33 experts on possible Bitcoin price situations over a variety of timeframes. The experts’ consensus is positive, a prognosis that goes against current market mood. The possibility of a rate hike by the Federal Reserve in the United States could act as a headwind for Bitcoin. For certain market participants, at least, this appears to be the dominant story.
Experts’ bias has gradually shifted from bullish for the majority of January to neutral this week and negative for the week of February 6, 2022. The possible impact of the Federal Reserve’s interest rate hike, according to experts, will be a top concern for investors in the first half of this 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 win in an escalating interest rate situation. BTC’s price is expected to peak at $93,717 in the next few months, before falling to $76,360 by the end of 2022, according to experts.