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

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Bitcoin (BTC) is more likely to finish 2021 effectively beneath analysts’ goal projections of $100,000. Kraken CEO Jesse Powell, who had additionally projected a $100,000 value goal for Bitcoin, nonetheless stays bullish in the long run, however he doesn’t rule out a sharp drop in the short term

One of many negatives that will add stress to Bitcoin within the quick time period is the shift in america Federal Reserve’s financial coverage. On Dec. 15, the Fed introduced that it might wind down its bond-buying program at a quicker tempo, and it additionally projected three rate of interest hikes in 2022.

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Crypto market knowledge each day view. Supply: Coin360

Sam Stovall, chief funding strategist of CFRA Analysis, instructed CNBC that traditionally, the S&P 500 tends to put up destructive returns within the 12-month interval when the Fed undertakes three or extra charge will increase.

If historical past repeats, Bitcoin may additionally wrestle to run away as a result of its robust correlation with the S&P 500 at varied phases in 2021. It’s troublesome to foretell with certainty whether or not traders will proceed to purchase Bitcoin to hedge their portfolio towards rising inflation if a risk-off sentiment will lead to profit-booking.

With this uncertainty, let’s flip to the charts and conduct a long-term Bitcoin evaluation to find out the vital ranges to be careful for.