- Market analyst Krüger predicts a bullish momentum in January for Bitcoin.
- Pundits believe the streak of profit-taking is coming to an end.
- Traders are anticipating a bullish year for Bitcoin given the cyclical nature of the asset.
Pundits are expecting a rebound for Bitcoin soon. They expect this to happen once the current round of profit-taking has run its course.
Bitcoin Is Expected To Ride A Bull Wave In January
In what technical analyst Alex Krüger has termed the “first week of the year effect,” pundits believe there is a chance for investors to expect some bullish momentum in January. Krüger revealed that this bullish momentum has been seen in the first week of January since 2018. He noted that the price of Bitcoin always saw a pump of about 7% to 36%.
The expert noted that BTC climbed by 36% in the first week of 2021 and made a 13% jump in 2020. 2019 and 2018 saw a spike of 7% and 18% respectively in the opening week of the year. 2021’s spike came as a result of the stimulus funds given to US citizens at the time when the stock markets were closed. Thousands of retail investors turned to Bitcoin as an investment mechanism, driving up the asset’s prices.
“Still expect a strong crypto up market in early Jan driven by fund inflows. Then risk-off ahead of the next FOMC (Jan/26) if the next inflation print comes in too hot (Jan/12),” Kruger added.
When the technical analyst was asked about the causes of the price surges in the past, he responded by saying, “Tbf only 2020 and 2021 matter, different markets, so do with those two data points as you will.”
According to Krüger, there will be a large infusion of capital into Bitcoin at the start of the year. Raoul Pal, the CEO of market research firm Real Vision, appears to agree with this sentiment. Raoul Pal believes that the bears are running out of steam and that institutions will re-enter the market in January, prompting a price spike.
December was not the best of months for the largest cryptocurrency, as it lost nearly 30% of its value from its all-time high in October. The year did not end the way many crypto enthusiasts would have expected, with pundits previously forecasting the asset’s price to hit $100,000 before 2021’s end as prices currently hover around $46K.
The Outlook For Bitcoin In 2022
Generally, investors are positive going into the next year and still believe that the $100,000 price point is a possibility for the asset. A number of surveys reveal that institutional interest is on the increase as many now look to the asset as an inflationary hedge.
Cryptocurrency regulations are in the pipeline as regulators and Congress cross-pollinate ideas on the best ways to rein the new asset class. Despite the wave of regulations on the horizon, investors remain optimistic that they will not stifle the growth of the nascent ecosystem. Already, top crypto executives are in talk with Congressmen on the best way to regulate the space and it is expected that the much-needed clarity will be introduced.