Since the beginning of the year, the price of bitcoin has maintained a very comfortable rise with an increase of 65%. However, since the all-time high of $ 69,000 reached in early November, the latter corrects and evolves down 30% from this high.
This correction remains for the moment in line with the volatility observed in cryptocurrencies, but the arrival at a significant technical level could set the trend in the medium term.
What are the prospects for cryptocurrencies in 2022?
The current trend is still quite negative, but cryptocurrencies continue to benefit from investors’ recklessness in the face of significant risks in today’s economic world. Endless pandemic, supply chain problems, steep rise in inflation, energy crisis, change in central bank monetary policy, and possibly a worsening earnings outlook for listed companies.
An awareness on the part of the markets that the valuation of financial assets is completely uncorrelated with the current situation, could stop the perpetual rise of the markets and drag the cryptocurrency market with it.
Indices are likely to continue rising towards the end of the year as fund managers support the market to present a formidable year to their investors, but the start of the year could darken and the Fed’s focus on monetary tightening. Or the ECB should accentuate a sell movement.
This hypothesis could lead to a sharp drop in the price of cryptocurrencies and in particular of Bitcoin.
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And for the future?
Blockchain is a technology created to stay. DeFi, NFT, trading, or even use in everyday life, as currency or something else, are bound to anchor in our economic and financial world.
On the other hand, the valuation of cryptocurrencies and in particular of Bitcoin, is insignificantly high given the young experience of this new technology so far. It is true that the promises offered by the blockchain and the cryptocurrency market are tempting, but at the height of its 12 years of existence, the difficulties of implementing technology in habits, managing to convince a large majority of the population o Even the attempts of some to maintain the current system should not be taken lightly.
Certainly the Internet has become the essential tool in today’s world after having been supposedly “abandoned” on numerous occasions, but certain technologies have them, beautiful and well disappeared.
In other words, the road is still long and there is no guarantee that the level of use of Bitcoin or other blockchains in the future will justify such a high valuation in the next few years.
Bitcoin price graphical analysis
Bitcoin is moving into the 200 period moving average near $ 47,500 and the confirmation of the bearish breakout could lead BTC to significant support at around $ 41,000. Maintaining the latter is important so as not to see the price collapse towards the year’s lows near $ 30,000.
A validated bounce off the 200-period moving average, on the other hand, would eliminate the risk of a downturn and could lead to a return from the rally towards $ 55,000 and the 100-period moving average.
BTC daily chart
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