Crypto markets saw surprise volatility on Thursday and Friday, despite a worse than expected consumer price index in the US market.
Although consumer price index (CPI) data favored an immediate sell-off after hitting 8.2%, traders and investors took advantage of the decline to continue buying.
The overall cryptocurrency market has gained more than 5% in the past 24 hourswhile some large market cap crypto-assets also saw impressive gains.
Market leader Bitcoin (BTC) was a great indicator of how the market suddenly rallied.
Following the CPI announcement, there was an immediate selloff, with bitcoin dropping from $19,000 to $18,319.82 within 24 hours.
But within 12 hours, bitcoin rallied to $19,835.17, a gain of 8.2% from the all-time low, with volume up 76% from the previous day.
A drop in price has since followed, but the bitcoin is now trading at $19,640.67an increase of almost 5% in 24 hours.
Bitcoin Price Prediction: Short-Term Gain, Medium-Term Difficulties?
As CryptoNews analyzed in more detail earlier this Friday, the technical data all point to additional gains in the immediate future.
On the four-hour timescale, bitcoin broke above the 50-day moving averageindicating an uptrend.
In addition, indicators such as the relative strength index (RSI) as well as the Convergence and Divergence of moving averages (MACD) are both in a buy zone.
Bitcoin could soon cross the $20,000 mark and hit $21,000 in the next few days.
However, there is reason to be cautious in the coming weeks despite the mini breakout.
The respected trader on Twitter, he Capo of Crypto, predicted for weeks a floor around $14,000 and, although he has changed his prediction, he still believes that this price will arrive at some point in November.
The trader has acquired great notoriety in the industry after having predicts drop to $20,000 as bitcoin trades near all-time highs in November 2021.
He wrote later Thursday:
What has always worked for me is sticking to a plan until clear invalidation. I said the invalidation for 21k was a CLEAR break of 19k. This means that the HTF closed below this level, with volume. The price broke 19k but never closed below.
In fact, once it broke through the level, my system gave bullish signals and a strong potential bounce. That’s why I remained optimistic. Currently, the price is back above 19k, so movement below that level is considered a (bullish) deviation.
The incoming request confirms this. There is juice to keep going up. The short squeeze is not over and 21k is very likely. Then I will completely switch positions and wait for further lows.
He thinks the bitcoin could then bounce up to $25,000 in December.
On Friday morning, he further clarified his position with another chart, saying that his view would be invalidated if BTC finds support at $21,500 and pushes down to $22,700 and $24,800.
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Long Term Bitcoin Price Prediction
Most Crypto Analysts remain extremely optimistic about the long-term bitcoin priceas Web3 adoption continues and BTC reaches its maximum supply.
The next halving cycle is expected to take place in March 2024 and, historically, the months leading up to a halving have triggered a rally.
Additionally, data from Glassnode shows that the bitcoin accumulation rate increased faster than ever in 2022, with a record number of wallets holding over 1BTC.
Between October 2020 and June 2022, this figure remained static, between 800,000 and 820,000but it has since grown tremendously during the crash to over 900,000.
Meanwhile, the Bitcoin Fear & Greed Index remains at 24, representing “extreme fear”, but the low price of BTC has not deterred institutions from investing in the coin or in the wider crypto space.
Again this week, Google Cloud has partnered with Coinbase to accept bitcoin paymentswhile Nasdaq, Fidelity and others have all made new inroads into this space lately.
Bitcoin has become particularly difficult to predict, but a large number of analysts remain confident the piece will reach $100,000 in the next two years and $1 million in the next decade.
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Alternative Bitcoin – Tamadoge
The major problem for investors who invested late in bitcoin is that many of them have the feeling of having already missed most of the most important gains.
$100,000 bitcoin would require an incredible amount of money to buy it, but would only be 5 times its current price. While this cannot be overlooked, investors can find better returns elsewhere in the crypto space.
Tamadoge is one such alternative that has seen early investors realize 18x returns after its first listing on the markets at the end of September.
Price has since retreated, but looks set to do a new breakthrough in the coming weeks.
The first part of its NFT collection – which will form the center of its “play-to-earn” universe – has just been released, and development continues for the Tamagotchi-style game, P2E arcade mini-games and an augmented reality app.
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