The price of Bitcoin is below the $100,000 target set by analysts, but what about 2022?


Bitcoin (Bitcoin) May be far below the analyst’s target forecast of $100,000 by the end of 2021. Kraken CEO Jesse Powell (Jesse Powell) also predicted that Bitcoin’s target price is $100,000, which is still bullish in the long term, but he does not rule out A sharp drop in the short term.

One of the negative factors that may increase pressure on Bitcoin in the short term is the change in the Fed’s monetary policy. On December 15, the Federal Reserve announced that it would End its bond purchase plan At an even faster rate, and is expected to raise interest rates three times in 2022.

Daily view of encrypted market data. source: Currency 360

According to Sam Stovall, Chief Investment Strategist, CFRA Research NBC Finance Channel Historically, when the Fed raised interest rates three or more times, the S&P 500 index tended to show negative returns within 12 months.

If history repeats itself, Bitcoin may also find it difficult to escape 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 continue to buy Bitcoin to hedge their portfolios in response to rising inflation risks. Closing sentiment will lead to profit bookings.

With this uncertainty, let’s turn to the chart and conduct a long-term Bitcoin analysis to determine the key levels that need attention.