Bitcoin price fell short of analysts’ $100K target, but what about 2022?

Bitcoin (BTC) is likely to end 2021 well unelevated analysts’ target projections of $100,000. Kraken CEO Jesse Powell, who had moreover projected a $100,000 price target for Bitcoin, still remains bullish in the long term, but he does not rule out a sharp waif in the short term. 

One of the negatives that may add pressure to Bitcoin in the short term is the shift in the United States Federal Reserve’s monetary policy. On Dec. 15, the Fed spoken that it would wind lanugo its bond-buying program at a faster pace, and it moreover projected three interest rate hikes in 2022.

Crypto market data daily view. Source: Coin360

Sam Stovall, senior investment strategist of CFRA Research, told CNBC that historically, the S&P 500 tends to post negative returns in the 12-month period when the Fed undertakes three or increasingly rate increases.

If history repeats, Bitcoin could moreover struggle to run yonder due to its strong correlation with the S&P 500 at various stages in 2021. It is difficult to predict with certainty whether investors will protract to buy Bitcoin to hedge their portfolio versus rising inflation if a risk-off sentiment will result in profit-booking.

With this uncertainty, let’s turn to the charts and self-mastery a long-term Bitcoin wringer to determine the hair-trigger levels to watch out for.

BTC/USD
Bitcoin’s sharp rally in 2017 pushed the relative strength tabulate (RSI) whilom 96, indicating a state of euphoria among traders. Vertical rallies are rarely sustainable and are usually followed by a sharp correction or a period of consolidation. That is what happened without the manful move ended in 2017.

BTC/USD monthly chart. Source: TradingView

The BTC/USD pair remained stuck unelevated the December 2017 highs until the breakout whilom $20,000 in December 2020. This shows a large base-building period of well-nigh three years.

The pair’s sharp rally in 2021 propelled the RSI whilom 91 in March surpassing profit-booking set in. However, unlike 2017, bulls aggressively secure the 20-month exponential moving stereotype ($37,281).

This suggests that sentiment remained positive and traders were using the dips to accumulate. The subsequent rally crush the pair to a new all-time upper at $69,000, but bulls could not sustain the higher levels. This shows that traders are booking profits on rallies.

The sharp correction has once then pulled the price toward the 20-month exponential moving stereotype (EMA) and the RSI is exhibiting signs of a negative divergence, indicating that the bullish momentum may be weakening.

If bears sink and sustain the price unelevated the 20-month EMA, the pair could waif to the hair-trigger support at $28,800. This is an important level for the bulls to defend considering a unravel unelevated it could result in a long period of base-building.

On the other hand, if the price rises from the current level, the pair could retest $69,000. A unravel and tropical whilom this resistance could signal the resumption of the uptrend.

BTC/USD weekly chart. Source: TradingView

The bulls pushed the price whilom the $64,899 level on two occasions but could not sustain the higher levels. This could have trapped the warlike bulls who purchased the breakout, resulting in a long liquidation.

The 20-week EMA ($52,016) has started to turn lanugo gradually, and the RSI has dipped into the negative zone, suggesting that bears are attempting a comeback. The bulls attempted to defend the 50-week simple moving stereotype (SMA) ($47,709) but could not momentum the price whilom the 20-week EMA.

This could have attracted remoter selling, and the bears are now trying to sink the price to the next strong support at $39,600. This is an important level for the bulls to defend considering if it cracks, the pair could plummet to $28,732.

Such a move could wait the start of the next leg of the uptrend and may pension the pair stuck in a range between $28,732 on the downside and $69,000 on the upside.

On the contrary, if the price turns up from the current level and breaks whilom the 20-week EMA, bulls will make one increasingly struggle to well-spoken the $64,899–$69,000 overhead resistance zone.

If they succeed, the bullish momentum could pick up, and the pair could start its northward journey toward the $100,000–$109,000 price zone where the rally may squatter strong headwinds.

Alternatively, a unravel and tropical unelevated $28,732 could result in a withstand market with the next strong support at $20,000.

Related: Bitcoin tests yearly moving stereotype as $100K by Christmas needs 'small miracle'

BTC/USD daily chart. Source: TradingView

The pair has been unthriving inside a descending waterworks for the past week. Both moving averages are sloping lanugo and the RSI is in the negative zone, indicating that bears are in control.

If the price turns lanugo from the current level or the 20-day EMA ($50,054), it will suggest that sentiment remains surly and traders are selling on rallies. That could pull the price to the Dec. 4 intraday low at $42,333.

This is an important level for bulls to defend considering if it cracks, bears will struggle to sink the price unelevated the support line of the channel. If they manage to do that, the selling could intensify further.

The zone between $39,600 and $37,300 may act as strong support, but if bulls goof to push the price whilom the 20-day EMA, the ripen may proffer to $28,800.

Conversely, if the price rises and breaks whilom the resistance line of the channel, it will signal that the selling pressure could be reducing. The pair could then rise to the 50-day SMA ($56,524), which may then pose a stiff challenge.

The bulls will have to push and sustain the price whilom the 50-day SMA to indicate the start of an up-move to $60,000. This level may act as a strong resistance, but if crossed, the rally could retest the all-time high.

The views and opinions expressed here are solely those of the tragedian and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should self-mastery your own research when making a decision.