The beginning of 2022 has been rocky for the world’s largest cryptocurrency, Bitcoin. According to experts, the digital token is likely to reach the $100K mark. This isn’t an issue of “if” but rather, when. Deutsche Bank reports that Bitcoin traders see BTC hitting $110,000 in the next five years.
Experts warn crypto investors to be careful about the amount they invest. This is due to the recent volatility in BTC.
It had seen a dramatic rise in price over the past years. Even though the market remains bearish, investors expect a bull run in its prices soon.
The Bitcoin Price Movement: A Briefing
BTC looks like it is on the verge of a rebound, even though crypto markets are currently not favorable for investors. Since September’s drop from $22,000 to $19K, it has held steady at that level. Many believe that Bitcoin’s range has been a sign of a rally, or at the very least, a temporary one.
Many factors contribute to the unfavorable Bitcoin price movement. The crash of Terra was another major reason for the decline in crypto markets.
The event has maintained BTC’s price hovering at $20K since mid-June. It did sometimes go above this level.
BTC Rebound Expected
The market remains bearish, but the crypto market shows signs of rebound. On-chain data from the cryptocurrency market show this. According to Crypto Quant data, the bullish trend can be expected for a long time.
BTC showed some growth in both its weekly and daily volume, according to an analysis. This is a sign that the market has consolidated a bullish long-term trend. This is why investors are hopeful for a bullish stock market within a relatively short time.
Although these signs don’t seem to be recent, it is worth noting that they were seen multiple times in March 2022. Bitcoin’s price at the moment of writing is $18,712, with an increase of 2.31%.
Experts said that it is unlikely that the BTC prices will turn bullish. They are basing their predictions on the historic trend in crypto markets, which usually lasts between 24 and 27 months.
Florian Grummes shared his views on the crypto winter. Grummes, the director of Midas Touch Consulting. Based on historical patterns, Grummes stated that the crypto crash could last another year.
Featured image taken from Pixabay. Chart from TradingView.com