Crypto Briefing 4/19/22 - The Forecast

Crypto Briefing 4/19/22

Crypto Briefing 4/19/22

As we discussed in last week’s briefings, Bitcoin has once again started to turn bullish. With tax season officially over, the crypto market faces less selling pressure and can begin its rally again. Our next short term price target for Bitcoin is between $49,000 and $52,000. As Bitcoin starts its recovery in earnest, we should begin to see more altcoins enjoy parabolic moves to the upside.  Aside from technical analysis we rely on a variety of tools that give us an edge in our market analysis. For example in the stock market we monitor market cycles, market sentiment, and fundamentals. For our research in the crypto market this extends to on-chain data. Currently, we are seeing a net outflow of Bitcoin from exchanges. Whenever this chart reaches an oversold level, you can expect a large rally to occur shortly thereafter.

There are a number of bullish signals that could potentially portend Bitcoin making a new all-time high in the months ahead. For example, nearly every single commodity has set multi-year highs. With inflation now affecting gas prices, food, and services, there is a possibility that Bitcoin could set a new all-time high from the same forces at work.  While Bitcoin is not a commodity itself, it benefits from the same catalysts. The degree of price increase seen in commodities implies strength in Bitcoin’s use cases as an inflationary and geopolitical hedge.  And while far more functional than bullion, Bitcoin has been dubbed “digital gold” for good reason.