InTheMoneyStocks.com’s Chief Market Strategist, Gareth Soloway, believes Bitcoin will make a significant downward move in 2022. He has, however, just purchased the Bitcoin plunge and anticipates a short-term recovery.
Soloway reiterated his prediction of a Bitcoin price drop in a recent interview with Kitco. He believes the world’s most popular cryptocurrency might go as low as $20,000 but that a rally from there could push it above $100,000.
When the strategist claimed he didn’t think calls for $100,000 before the crash were correct, he was proven correct recently. Instead, he believed the Bitcoin chart at the moment was displaying a double top.
He believes that bigger players than retail were offloading into all-time highs, first at $67,000, then at $69,000. The subsequent price drop, he claims, confirmed a failed breakout.
He stated that “fear and greed drive the markets in the near term” when describing himself as a shorter-term trader.
The trader bought bitcoin at around $48,000 for his short-term outlook, claiming that it had reached major support and a major trendline. However, before taking profits on this swing trade, he anticipates bitcoin to rise to roughly $52,000 or $53,000.
He believes that the king of cryptocurrencies will be weighed down by the system’s obstinate degree of leverage, as well as the reality that any stock market decline will bring crypto down with it. In his opinion, the current panic in the stock market must also infiltrate the crypto market.
Soloway envisions his $20,000 bitcoin becoming a reality as the Fed’s “tightening” and “tapering” calls spread more and more fear into the markets, producing a deleveraging and a subsequent crash in crypto.
He believes that when Jerome Powell was given a second term as chairman of the Federal Reserve, the Biden administration told him (as the midterm elections approached) that he needed to bring inflation down, given a large number of democratic voters with middle-income jobs who are being harmed by rising inflation.