Traders delay $100K Bitcoin prediction, but still expect a blow-off top in 2022

Bullish traders who drank the “Bitcoin up to $100,000 by year-end Kool-Aid” Kool-Aid have come to terms with the reality that 2021 may not see a Santa Claus rally. The pipe dream has now become a simple hope that the top cryptocurrency will at least finish the year over $50,000.

Data from TradingView and Cointelegraph Markets Pro shows that the jump in BTC price following comments from Federal Reserve Chair Jerome Powell is almost gone. Over the past 48 hours, the price has fallen to $45,500 and it looks like the price could fall further.

BTC/USDT 4-hour chart. TradingView

This is a look at how traders view Bitcoin’s price action right now and what the future holds for it.

Bitcoin’s price action mirrors May’s consolidation

Pseudonymous analyst on Twitter, “Rekt Capital”, compared current price action with the consolidation seen from May through July.

BTC/USD 1-week chart. Source: Twitter

Rekt Captial said,

“BTC is consolidating within these two bull market EMAs. Similar to May 2021 (yellow circles).

If this happens, BTC’s price could continue to decline for 6-8 weeks before it re-emerges in its upward trend.

$44,000 could be the bottom

Michael van de Poppe from Cointelegraph, a contributor to the site, predicted a similar outcome and posted the following chart. It shows a rough outline of how BTC prices could change over the next few months.

BTC/USDT 4-hour chart. Source: Twitter

Van de Poppe believes there is a possibility of another drawdown towards $44,000. This will be followed by a consolidation period at the current levels and then a resumption the uptrend.

Related: An analyst lists 21 factors that could lead to Bitcoin’s price rising — but only 4 bearish signals

Sentiment swings don’t affect the underlying strength

TechDev, a cryptocurrency analyst posted this chart that provides a macro view of BTC’s price action following each halving cycle.

BTC price in each halving cycle Source: Twitter

TechDev has identified two instances in which BTC price experienced extreme volatility, but was followed by a rally at the end of the stage and blow-off top scenario to a new record high.

TechDev stated,

“Despite several swings in sentiment in the past 2 weeks, Bitcoin remains in the same macro position.”

TechDev responded to the tweets with a bullish outlook on BTC long-term. He stated that TechDev was keeping “all eyes” on the retracement levels.

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https://cointelegraph.com/news/traders-delay-100k-bitcoin-prediction-but-still-expect-a-blow-off-top-in-2022