If this BTC price fractal plays out, Bitcoin might touch $333K in a 'parabolic' way.

Here's what to anticipate from Bitcoin as a legal tender - KoboCrypto |  Learn everything Cryptocurrency

A shift in the Fed's stance might trigger a "flight to safety," sending Bitcoin's price skyrocketing.

According to a new projection, Bitcoin (BTC) might reach a staggering $333,000 by May 2022 if the US Federal Reserve creates a "perfect storm" of low rates.

Filbfilb, co-founder of trading platform Decentrader, updated an uncannily accurate price forecast on Dec. 27, drawing dizzying conclusions regarding BTC price action next year.

Analyst: "You don't have enough crypto" for 2022 bull run

BTC/USD is poised to achieve massive gains in the coming six months assuming conditions remain the same as they were during 2021.

The Fed is expected to raise interest rates twice next year, and pundits believe that these hikes are priced in — but a surprise shift in policy may have far-reaching effects.

According to Filbfilb, who examined Fibonacci sequences as well as historical market activity during prior halving cycles, Bitcoin could climb over $300,000 as a result of Fed policymakers easing up on rate hikes.

"To get there parabolically," he told Cointelegraph, "we'd probably need a perfect storm of the Fed's inability to hike rates (which are probably priced in) and heightened inflation, leading to a flight to safety in BTC."

The price behaviour has been extremely predictable since December 2018, when BTC/USD bottomed out at $3,100, as shown in the accompanying chart, which was uploaded on Twitter at the time.

"Price is exactly where predicted," Filbfilb told Twitter followers.

"You don't have enough crypto for what will happen in 2022."
BTC/USD annotated chart. Source: filbfilb/ Twitter
As incredible as that may sound, such a scenario isn't as far-fetched as it appears, at least in terms of technology.

The market is already showing signs of a breakout to the upside, as more and more indications line up to demand it. Even low-timeframe data is positive – for the first time in six weeks, BTC/USD closed a four-hour candle above the key 200-day moving average (MA) on December 27.

The previous time an uptrend reached the same foot was in late September, just before the commencement of the current $69,000 all-time highs.

Stocks could win big — but not for long

On the topic of macro movements, the future looks bright for stocks as well amid a cooling U.S. dollar, commentators argue — even if rates do increase as expected.

George Gammon, author of investing newsletter Rebel Capitalist Pro, was upbeat as the last week of 2021 began.

"I think you may see Stock Market go way up in next couple months as "end of pandemic" narrative continues," he forecast.

"This gives Fed cover to raise rates after QE zero. After market digests & realizes economy has been decimated, then sees impact of higher rates, downside could be big."
In such a situation, the impact on Bitcoin would be determined by its correlation with stocks, as well as if it could recover from a precipitous collapse like the one Gammon predicts in March 2020.

Regardless, following the about-turn in early December, the general consensus is that Bitcoin has not yet reached its top.
kobocrypto comments are now open to all! Please keep discussions civil and on-topic.

DISCLAIMER

The opinions expressed here do not reflect those of kobocrypto.com or any of its employees.

Post a Comment

0 Comments