What does 2022 mean for BTC?
Bitcoin (BTC) is currently facing a phase of high volatility, with the cryptocurrency first testing levels below $16,000. The asset’s recent price movement has extended a bearish streak, with investors still looking for a possible bottom in the hope that Bitcoin can recreate historical trends ahead of the Thanksgiving holiday.
Over the past three years, the holiday served as a catalyst for the latest episode of Bitcoin’s bull run. In 2021, the asset traded at around $58,927, with gains of over 214% since Thanksgiving 2020.
In fact, during the 2020s, Bitcoin was valued at $18,764, with gains of over 162% from 2019’s price of $7,150. However, based on various technical analysis indicators, Bitcoin’s Thanksgiving bullish trend will be interrupted in 2022, with the asset likely to is trading at $16,353, according to CoinCodex.com’s forecast.
The Bitcoin community remains positive
As it stands, Bitcoin is heading into this year’s Thanksgiving with downward momentum, having plunged by around 71%, losing nearly $700 billion in market value since the last turkey dinner
However, the Bitcoin community at CoinMarketCap, which leverages this price estimate feature, estimates that Bitcoin will end the month on a high note ahead of the November 24 holiday, trading at $20,623. The average price estimate is based on votes from 24,402 community members.
With the 2022 Thanksgiving sentiment sounding unconvincing, the focus is on whether Bitcoin can defy the bearish environment and embark on a bullish turn. At press time, Bitcoin was trading at $16,200 with daily gains of less than 0.5%.
Bitcoin Technical Analysis
Additionally, Bitcoin’s technical analysis remains negative, with a summary recommending “sell” at 14. The one-day technicals have moving averages in line with a “strong sell” at 13.
It is worth noting that Bitcoin’s price correction is directly influenced by general market sentiment, led by effects from prevailing macroeconomic factors such as rising inflation. At the same time, the asset remains tough after the impact of the collapse of the FTX cryptocurrency exchange.
In this line, cryptoanalyst Mark Moss acknowledged that Thanksgiving in 2022 would be a difficult trip for Bitcoin investors. In a chirping On November 22, Moss stated that the focus should be diverted from the price to other onchain measurements such as growth and development of the network.
“It’s going to be another tough Thanksgiving for Bitcoiners around the table, explaining WHY the USD price is a distraction,” he said.
Although the odds appear that Bitcoin will rise year-over-year from the last Thanksgiving holiday, analysts have identified critical levels for the asset to reach before exiting the bear market. As reported by Finbold, crypto technical analyst Matthew Hyland pointed out that $20,200 is a crucial level that will potentially allow Bitcoin to embark on another rally.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
