Why 20k for Bitcoin in 2022
In my previous article, 20k Price Prediction for Bitcoin 2022, I wrote about the Bulls and Bears thesis for the future of Bitcoin. In this article, I will break down my 20k price target using Bitcoin price action history.
Currently, Bitcoin is trading at 34K, 12% less since last week and 50% down since its all-time high. If Bitcoin continues its trajectory, it will soon hit its 1st support line of 29K, the cluster of lows for 2021 trading.
The 2nd support line for Bitcoin appeared to be at 20k, which was the last rally high back in 2018. And, the probability for Bitcoin to breach the 1st line of defense and trade near 20k is unimaginable in just the past year. However, the recent Bitcoin price action movement has proven to us that it does behave more like a growth stock than a safe-haven asset such as physical gold to limit our exposure in a tumultuous time, considering the significant events that took place in the 1st half of 2022:
1. Russia invaded Ukraine, and there is no end in sight.
2. China is still under lockdown due to its zero covid policy.
3. High Inflation due to multiple shocks to its supply chain.
4. Federal Reserve tightened its monetary policy to counter inflation.
We all know it is easier to roll down the slope than to hike up the hill, and in my opinion, it is better to err on the defensive side than to end up free-falling during this uncertain period.
Disclaimer: The information contained in this article is not legal or investment advice. This represents my personal views and, as always, Do Your Research.
Please let me know if you have any questions or if there is anything you would like me to write in general; leave a comment below. Thanks for reading, and I hope you enjoyed the article.
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