Opinion: Bitcoin (BTC) Is Оversold, But It Won’t Rise Above $45K in the Short Term

Opinion: Bitcoin (BTC) Is Оversold, But It Won't Rise Above $45K in the Short Term

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For the week since the beginning of the year, bitcoin has decreased by 9%. A rebound is expected, but it is unlikely to get it to a price above $45K, according to technical analysis.

After the publication of the minutes of the Fed meeting, all markets fell, but the fall in cryptocurrency turned out to be more than, for example, NASDAQ or S & P500. Experts consider this to be normal since cryptocurrencies are considered to be more volatile. The sharp decline should be followed by growth and consolidation. However, the analysis of the BTC chart does not give hope to see big growth.

The upside is capped by the $45K resistance level. It is highly likely that buyers who bought lows will take profits. After that, a continuation of the downward movement is possible even below the support level of $40K. The next support level, according to technical analysis, is the price of $28K, which is close to the June 2021 low.

Overall, the whole of 2022 could be more challenging for bitcoin than the previous year, according to Mark Yusko, founder and chief investment director of Morgan Creek Capital Management, a large investment company. The expert predicts a “bumpy ride” for the king of cryptocurrencies. Mark Yusko believes that a bear market is possible, as it usually happens two years after the halving.

Bitcoin halving occurs on average every four years. The last halving took place in May 2020. Earlier, after the halving in 2009, 2012, and 2016. bitcoin did decline near the middle of the cycle, and then a fast soar followed. The next halving is expected in 2024. Experts predict the price of BTC by this time at about $1 million. However, difficult times are also expected this year due to the tightening of regulation.

Mark Yusko notes that the attitude of regulators to cryptocurrencies has changed twice already. Initially, it was the ‘we-ignore-you’, until about 2015. Then there was the “we’re laughing” phase. The regulators seemed to say, “Hey, we kind of laugh at you. Look at those crazy people over there with their bitcoin”. But in 2022 comes the ‘we-fight-you’ phase. The expert notes:

– The banks and the big financial institutions don’t want deposits moving from fiat currency into digital currencies. So regulation is going to be a watchword this year. It will cause some stress.

At the same time, Yusko is confident that there is no need to worry about the price of BTC, given the obvious advantages of the king of cryptocurrencies and other cryptocurrencies.