Crypto analyst Akash Girimath explains why it is possible for Bitcoin (BTC) to go to $28,000. However, some popular analysts say that $20,400 is a key level for the bulls. They note that if it loses this level, it is likely to bring Bitcoin much lower. We have prepared the analysts’ Bitcoin predictions and evaluations for our readers.
Why does a $28,000 Bitcoin make more sense now?
Bitcoin price has been responding well to the bullish developments that have occurred over the past month. Seen through the lens of Bitcoin’s historical performance in the fourth quarter over the past decade, it’s possible that a recent breakout could be the start of a prolonged bullish run. Below is a chart showing the average return of Bitcoin price in different quarters since 2009. The average return in 4Q was 27%, the highest after 21% in 2Q.
However, historical performance is not a sure way to predict the future. However, if the cycle repeats in 2022, it’s possible for investors to see an explosive move north in the next two months.
“Bitcoin forecast shows continued bullish outlook”
BTC price saw a bullish divergence on the three-day chart developed between June 30 and October 25. This technical formation happens when price dips do not reflect similar dips in the RSI, a popular momentum indicator. Failure to be confirmed as such by the RSI is usually a sign of a weakening of the downtrend. It is also indicative of a market reversal approach.
Bitcoin finally saw a big breakout on October 25th. Thus, it recorded a 9% increase in about 24 hours. Following this, BTC pulled back a little to support the $19,850 or $19,650 levels. This is likely to become key accumulation zones for the next leg that will push BTC towards the psychological $25,000 level. The $25,000 barrier is the midpoint of the 45% move between May and June. It’s also a crucial point in BTC’s journey. Turning this resistance level into a support base will indicate a resurgence of the uptrend. This in turn will push Bitcoin into the next key area, which ranges from $28,000 to $29,000.
These levels are where the CME’s Bitcoin chart has gaps in price action as the platform remains closed on weekends. Historically, BTC has acted to rebalance these inefficiencies, making the $28,000 to $29,000 area a good place to take profits. In a wildcard scenario, it is possible for this Bitcoin rally to extend to the psychological level of $30,000. This means that it increases the total profit to 51%.
This look seems like extreme bullish at first. However, the Supply metric on On-Chain Exchanges gives confidence to buyers. The metric works in contrast with a drop in supply that indicates a drop and an increase. It is now declining. This means that investors tend to move their Bitcoins from more secure wallets to exchanges as a first step before liquidating them. From June 13 to October 27, the supply of BTC on exchanges fell from 1.92 million to 1.6 million. This 16% drop shows investor confidence. Indicates that fewer holders are willing to sell their holdings. So, this is also a bullish development.
“This indicates the potential for a pullback”
cryptocoin.comAs you follow, Bitcoin’s 9% this week was impressive. But it is unsustainable from a lower time frame perspective. The Short Term Holder Spent Output Ratio, or STH-SOPR indicator, is used to determine whether investors are selling their holdings at profit, loss or breakeven.
If STH-SOPR is greater than 1, short-term holders are selling at a profit. This indicates an increase in selling pressure and it is possible to trigger a bearish trend. Currently, this on-chain indicator is hovering above 1. So this also points to the potential for a pullback.
On the one-day chart, potential levels at which Bitcoin price might retest include the 50-day and 30-day Exponential Moving Averages (EMAs) at $19,847 and $19,640, respectively. Therefore, if BTC finally hits its $30,000 target, then accumulating at these levels could yield maximum gains.
However, breaking the checkpoint i.e. the highest trading volume level for 2022 at $18,981 could invalidate the bullish thesis for BTC. This development is likely to trigger another crash that will take BTC to its June 18 low of $17,593. Here, buyers have another chance to step in. However, accumulating BTC and potentially starting a recovery.
Bitcoin forecast: BTC headed to a very important price level
Crypto analyst Michäel van de Poppe states that Bitcoin price will face the next resistance between the $20,750 level and the $20,900 level. This is an important level for Bitcoin. The analyst says that Bitcoin must stay above the $20,500 level for the uptrend to break through and reverse. The analyst notes that BTC is ready for a test at $20,000 before a major rally.
A crypto analyst nicknamed RektCapital has detected that the weekly Bollinger Bands are getting narrower on the Bitcoin chart. Non-volatility typically leads to price compression. Also, any price compression is the driver of new volatility in a digital asset. Therefore, the analyst expects Bitcoin price to break out of the downtrend and witness a breakout in the short term.
According to analysts at FXStreet, Bitcoin has the potential to rise to the $23,000 level.
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