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“I think Bitcoin is the first crypto money that has

the potential to do something like

changing the world”

— Peter Thiel – Founder of PayPal

Bitcoin Market Analysis: Navigating the Cryptocurrency Landscape in Early 2022

As the global debate continues over cryptocurrencies’ potential to replace traditional currencies and digital payments, Bitcoin remains a focal point of intense discussion and speculation. Despite expectations of a year-end bull run to kick off 2022, the cryptocurrency found itself hovering around the critical $42,000 level, creating uncertainty among investors and analysts. So, a Bitcoin Market Analysis is due.

As the global debate continues over whether cryptocurrencies can take the place of traditional currencies and digital payments, Bitcoin continues to increase trade and become an increasingly popular and traded currency.

Unfortunately, we all expected a year-end bull-run to kick o 2022 with a bang, but the opposite happened and now BTC is flirting with the sacred level of 42K. Difficult to make an estimate as at the moment there is a certain mistrust even on the part of central banks, so what should we expect in the months to come?

The Missed Predictions

PlanB (@100trillionUSD), a prominent Bitcoin analyst, became a topic of conversation after his bold predictions failed to materialize. He had previously forecasted Bitcoin reaching around $135,000 by the end of the year, a projection that did not come to fruition. As he candidly acknowledged: “Nov98K & Dec135K miss = FLOOR MODEL FAIL”.

PlanB (@100trillionUSD) fooled everyone a bit.

The cryptocurrency market demonstrated a challenging landscape, with Bitcoin struggling to break through the $52,000 resistance and subsequently retreating to the $42,000 support level. This volatility highlights the unpredictable nature of the market, especially for novice investors (without a real Bitcoin Market Analysis) who might follow predictions without comprehensive understanding.

Warning – we love PlanB and its models, now we’re just a little sarcastic. Our Bitcoin bull-guru had told us that by the end of the year we would have reached around 135,000 USD in value for Bitcoin and we, consequently, had planned to sell on those gurus and then buy back in the following descent.

But the opposite happened, Bitcoin got stuck in the 42K-52K channel and hit hard against the Chinese wall present on 52K, returning in strength towards 42K.

Market Analysis and Potential Scenarios

Current Market Dynamics

• From annual highs, Bitcoin experienced a decline of approximately 19.92%
• No significant movement has been observed in the $40,000-$60,000 range since February 2021

Support and Resistance Levels

• Safe minimum hold area: Between $32,000 and $42,000
• Maximum waiting area: Between $52,000 and $62,000

Most people talk about a recovery only up but not down, beginners invest according to the people they follow and can lose their money, which can generate a low but regular income instead of a long-pending deposit waiting for some peaks. The 135K rush failed, now people expect it in the next quarter and if it fails, the next quarter, but if it doesn’t and BTC breaks the 42K support.

Potential Short-Term Scenarios (Elliott Waves Analysis)

Bullish Scenario

• Potential development of W5 wave
• Possible price target above $72,000
• Key levels: Maintaining $42,000 support
• Potential drop to $37,000 (0.786 retracement)

Bearish Scenario

• Potential extension of C line
• Possible price targets: $33,000 or potentially as low as $23,000 (1.272 retracement)

Basically, there hasn’t been any movement in the

40K-60K range since February 2021, so now, up

or down, that’s the question.

Key Monitoring Levels and Investment Strategy

Critical Indicators

• Weekly/monthly close below $30,000 would challenge long-term bullish projections
• January close below $40,000 could signal a medium-term bearish trend

We remain of the idea that every Bitcoin dip is a great opportunity, we are convinced that – sooner or later – BTC will easily exceed $100,000 in value; but we lean towards a market that has transformed. The market went from super bullish to bullish/bearish.

Let’s proceed step by step and resume the projections made in and for the following 12 months or until the end of 2022.

• We find a safe minimum and hold area between $32,000 and $42,000

• We also have a related maximum area for further waiting between $52,000 and $62,000

Recommended Investment Strategy

• Stay cautious and observe market developments
• Consider Dollar-Cost Averaging (DCA) strategy
• Mediate downward and gradually increase cryptocurrency holdings

From the annual highs to date, the decline has been around 19.92%. Is this retracement an opportunity to buy, or is it better to wait for further declines? End of the Bitcoin rush?

Let’s not joke, we remain assiduous believers of the crypto world in general and of Bitcoin above all, but we must still try to understand what is happening right now, why the 135K plan has failed and what to expect in the near future.

Recommended Crypto Experts to Follow

• Anthony Pompliano (@APompliano) – Bitcoin & Crypto Fundamentals
• PlanB (@100trillionUSD) – Bitcoin Analysis
• Willy Woo (@woonomic) – On-Chain Bitcoin Analysis
• Andreas Antonopoulos (@aantonop) – Bitcoin & Open Blockchain Expert
• Cameron Winklevoss (@cameron) – Gemini Exchange Co-Founder

Disclaimer: Cryptocurrency investments are highly volatile. Always conduct thorough research and consider your risk tolerance before investing.