One crypto analyst asserts that Bitcoin will likely hit the $30,000 price range by May 2022 because now there are many reasons to hold the coin rather than to sell it for short-term gains so let’s read more in today’s bitcoin price news analysis.
Alan Masters, financial consultant, and analyst asserts that Bitcoin is the flagship cryptocurrency that could hit $30,000 by May 2022, citing an anecdotal technical indicator to support his bullish outlook. Dubbed as the Relative Strength indicator- RSI, the so-called momentum oscillator measures the speed and the change of the price movements. The RSI reading above 70 makes the asset overbought while a reading below 30 makes it oversold. Bitcoin shifted between overbought and oversold and even topped 80 once. Mr. Master considered the upside move as the main sign of a bullish momentum:
“When Bitcoin first hit this high on the weekly RSI, it grew straight for 550+ days. If we get similar action starting now, November 2020, we will see prices continue to increase with higher highs and higher lows until 2022 in May.”
The Bitcoin RSI on the weekly timeframe was 81 at one time and Mr. Master borrowed cues from the macroeconomic fundamentals to justify the bull target of Bitcoin of $30,000. The analyst also recalled the previous RSI uptrend which put on a huge amount of hype on the coin and lots of FOMO with retail buyers that jumped in heavily:
“But this is not the situation we are witnessing these days.”
Bitcoin rallied by about 250 percent from its mid-March low below $4,000 while the upside momentum was led by fears of inflation among investors with traders alike. The Global central banks even launched zero-interest rates while committing to quantitative easing in order to bypass the economic crash caused by the COVID-19 pandemic. The policies turned yields on government blonds lower but they also caused the US dollar to drop by prompting investors to find other opportunities in another market. BTC benefited from this as traders agreed that it will continue to attract more capital as long as central banks print money.
Big companies and governments like the USA one, could start buying Bitcoin in large quantities as Mr. Masters said:
“When this is happening, there is no reason at all for selling because if they are buying for the long-term, they know that something massive is going on.”
The $30,000 price level for BTC came thanks to the Fibonacci Retracement graph and Mr. Masters envisioned the cryptocurrency in an uptrend backed by a strong long-term bullish fundamental. He stated that the BTC/USD pair will hit at least the $20,000 target next year.
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