- Bitcoin looks like it’s turning a corner after months of collapse and stagnation
- 2022 could be a bullish year for Bitcoin despite suggestions of global market contraction
- What are the targets we should be looking for this year?
Bitcoin accumulation is officially taking place while technical indicators are lining up with fundamentals to suggest that a 2022 rally is on the cards. If this does come to pass, what are the targets Bitcoin could be looking at as the year progresses? We look at several scenarios to offer various viewpoints of what 2022 could hold for Bitcoin.
Four-year Wedge Says $100,000 by October
Bitcoin has actually been in an ascending wedge pattern dating back to the 2017 high of $20,000, the base of which was formed when the current cycle really began in September 2020:
Rising wedges are typically seen in bear markets after a collapse and signal that further downside is coming. In Bitcoin’s case however this has not been the case, with price using the support line as a platform for higher gains. The same seems to be happening again, suggesting that a rally to the resistance line is on the cards.
This model theorizes that $100,000 can be reached by October, and given that this is less than 2.5x from where Bitcoin is now, it is eminently feasible. If the cycle takes longer and we have to wait until winter to see a parabolic run, $110,000 in January 2023 could be a better bet.
Range-bound Bitcoin Would Reach $80,000
For those who think that Bitcoin isn’t quite ready for six figures yet, there is another pattern developing that caps the gains at more conservative values:
This model suggests that price will continue to range between the $40,000s and $70,000s for the foreseeable future, only ending when Bitcoin closes the week above or below it. Closing above would signal a climb to the six figures and beyond, while a close below it would usher in a bear market.
Using this model, a top of $75,000 in June-July is likely, with a potential run towards $80,000 by year end.
10-year Trend Line Posits $150,000 BTC
Seeing as we’re playing the long term game, let’s throw in a fun addition that has its roots in 2012:
This trend line, which started at the very start of the 2012-13 bull run, has acted as support and resistance at various points in the decade since, most recently in 2019. If Bitcoin follows this pattern.
This is a very optimistic trend line that has Bitcoin hitting $100,000 by August or alternatively, if we’re extending the cycle, $150,000 by year end.Not inconceivable of course, but market wider market conditions would need to be very favorable for what would be around a 3.5x return on Bitcoin from its current position of $41,000.
Path to Success?
There is one way that Bitcoin could achieve these lofty six figure goals however:
Such price action is not unthinkable by any means, and if market conditions are bullish enough there is every chance such an eventuality could come to pass by the end of 2022.
