Bitcoin (BTC) received an upside reaction from the $33,000 bottom to test the former support at the $40,000 region. The leading cryptocurrency is holding its weekly gains above 5% and the rise will be tough, according to analysts. In this article, let’s take a look at BTC price predictions from popular crypto analysts Jason Pizzino and Nicholas Merten.
Bitcoin’s dominance at the top of the last two months
In his recent analysis, Jason Pizzino said that while Bitcoin reacted to the upside from the 90-day low of $32,990, it sees a lot of resistance ahead for the leading cryptocurrency:
$36,000 is our base level. Most of the whales appear to be trading between these levels: $36,000 and currently $38,000, being rejected. So if we break above $38,000 or the top here is around $39,000, there is a lot of resistance above. At almost every $1,000, there will be some form of support and resistance.
Bitcoin bull expectations
Pizzino thinks that the continuation will be challenging even if the $ 40,000 resistance is overcome:
You can see the bottom that happened on January 10, so basically just for this milestone, it came to this level at about $40,000. After $42,000, $44,000 is next. So it will be a difficult match to come out of these bottoms.
In the short to medium term, Pizzino believes Bitcoin will likely enter a period of accumulation where whales load their funds into BTC in anticipation of the next rise. According to the crypto strategist, the accumulation period can sometimes take a year or more. While Bitcoin is facing heavy resistance with the possibility of entering an extended period of consolidation, Pizzino predicts when BTC can realistically reach ATH.
I don’t think we will see ATH levels in the first half of the year. It may be late in the second half of this year, but we still have a lot of climbing to do.
Nicholas Merten thinks Fed policies won’t affect the market
Crypto analyst Nicholas Merten says increases in interest rates are unlikely to kill the Bitcoin (BTC) and cryptocurrency market. Merten notes that when the Fed raised interest rates in 2015, Bitcoin still managed to rise from under $500 to nearly $20,000 in 2018:
When BTC was at $500, it started raising the Fed’s interest rates and stopped raising it at $11,000. But during that time, Bitcoin has soared from $477 to $11,000. If we really consider the highest price potential it had at the time, it practically reached $20,000. Thus, Bitcoin gained 40 times more market cap from around $500 to $20,000 during this time. And still, it was sitting around $11-12,000 when the Fed began lowering interest rates and reversing the trend.
Finally, Merten states that unlike many analysts, current interest rate hikes do not necessarily mean “doomsday” for crypto markets.