We’re already in 2022, and there’s no trace of any changes when it comes to Bitcoin’s price. The world’s leading cryptocurrency is still struggling. We’re all waiting for that price pump that should have probably happened already. In the past 24 hours, Bitcoin has stayed relatively flat, with technical indicators suggesting a possible price bounce, even if limited to the mid-$50,000 level.
For the past month, Bitcoin has been stuck in trade-offs and a trading range after a 20% drop early December. Since then, there have been a few oversold warnings, and price gains have been almost non-existent.
Still, many analysts believe it’s just a temporary thing. 2022 is supposed to be the year of Bitcoin, although a week in the new year doesn’t exactly read positively.
Counter-Trend Signals to Spell a Price Bounce?
For the past few days, there have been a few counter signals that typically precede price bounces. Over the weekend, Bitcoin managed to recover its price in the $46K-$48K range, but it declined support levels a few times. The world is still waiting for the supposed price jump. While technical indicators suggest it, no one’s sure when it would come.
In reality, Bitcoin has been stuck in mediocracy for the past month. It all started with a 20% price drop in early December, and it hasn’t been able to get past $50K and hold its ground ever since. The world’s leading and oldest cryptocurrency recovered over the weekend before falling into the red again as nearly $9 billion worth of Bitcoin and Ether options expired on Friday.
Bitcoin traded in a narrowed range as the “crypto watching day” ended. The price moves were not supported by strong market activities. However, there’s still some good news on the horizon according to some experts. Katie Stockton from Fairlead Strategies thinks that a daily close above $46,334 would be a positive affirmation that Bitcoin could begin its ascend to the mid-$50,000s.
That would still be a far cry from the $100,000 many have been preaching, including financial giant Goldman Sachs.
Can Bitcoin Hit $100K in 2022?
Goldman Sachs has repeatedly said that Bitcoin could reach such a value, and has stayed optimistic in its predictions. The company assumes a scenario where Bitcoin adoption rises as a store of value for investors instead of gold. Zach Pandl, Goldman Sachs’ co-head of foreign exchange strategy, said in a research not to clients that Bitcoin can steal gold’s thunder simply as a byproduct of increased adoption.
That’s all a hypothesis so far, but it’s already almost halfway there. According to estimates, the public has $2.6 trillion in gold for investment purposes. It puts the gold price at $1,800 per troy ounce. Bitcoin’s market cap is currently around $700 billion, with it currently commanding around 20% share store of value market which includes both BTC and gold.
If Goldman Sachs’ predictions are true, we could see a massive price jump soon. The only problem is no one knows how soon that comes.