The crypto markets saw surprise volatility on Thursday and Friday despite the US Consumer Price Index coming in worse than expected.
While CPI data saw an immediate sell-off after coming in at 8.2%, traders and investors took advantage of the dip and then continued to buy.
The overall crypto market cap has gained more than 5% in the last 24hrs while a number of large market cap coins also made impressive gains.
Market leader Bitcoin (BTC) was a prime example of how the market suddenly sparked into life.
After the CPI announcement, there was an immediate sell-off with Bitcoin dropping from $19k to a 24hr low of $18,319.82.
But within 12hrs that had peaked at $19,835.17 – an 8.2% gain on the low – with volume surging by 76% on the previous day.
A price retraction has since followed but Bitcoin is now trading at $19,640.67 nearly 5% up in 24hrs.
Bitcoin Price Prediction: Short-Term Gain, Medium-Term Pain?
As CryptoNews analyzed in further detail earlier on Friday, technical data all points to more gains in the immediate future.
On the four-hour timeframe, Bitcoin has surpassed the 50-day moving average, indicating a bullish trend.
Furthermore, indicators such as Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are both in a buying zone.
Bitcoin could break into $20k soon and reach as high as $21,000 in the coming days.
However, there is reason to be cautious in the weeks ahead despite the mini breakout.
Respected Twitter Trader Il Capo of Crypto has been predicting a bottom of around $14k for weeks and, while he has tweaked his prediction, still believes that price will come at some point in November.
The trader gained huge kudos in the space after predicting a drop to $20k while Bitcoin was trading near its all-time highs in November 2021.
He wrote late on Thursday:
What has always worked for me is sticking to a plan until clear invalidation. I said that the invalidation for 21k was a CLEAN break of 19k. That means HTF close below that level, with volume. Price broke 19k but it never closed below.
In fact, once it broke the level, my system was giving bullish signals and potential strong reversal. That’s why I remained bullish. Right now price is back above 19k so the move below this level is considered as a deviation (bullish).
Demand coming in confirms this. There’s fuel to keep going up. Short squeeze is not over and 21k is very likely. Then I will turn full bearish again and wait for new lows.
He believes Bitcoin could then bounce back as high as $25,000 in December.
On Friday morning, he further clarified his position with another chart, saying his opinion would be invalidated if BTC found support at $21,500 and pushed to $22,700 and $24,800.
Bitcoin Long-Term Price Prediction
Most crypto analysts remain extremely bullish on Bitcoin in the long-term as Web3 adoption continues and BTC reaches its max supply.
The next halving cycle is predicted to occur in March 2024 and, historically, the months leading up to a halving have sparked a bull run.
Furthermore, data from Glassnode shows that Bitcoin accumulation has been growing faster than ever in 2022, with a record number of wallets holding more than 1BTC.
Between October 2020 and June 2022 that figure stayed static at between 800k and 820k but has since seen huge growth amid the crash to more than 900,000.
Meanwhile, the Bitcoin Fear & Greed Index remains at 24, representing ‘Extreme Fear’ but the low price of BTC has not put off institutions from investing in the coin or the wider crypto space.
Only this week Google Cloud partnered with Coinbase to accept Bitcoin for payment, while Nasdaq, Fidelity, and others have all made further forays into the space in recent times.
Bitcoin has become notoriously hard to predict, but there are a huge number of analysts who remain convinced the coin will reach $100,000 in the next couple of years and $1 million in the next decade.
Bitcoin Alternative – Tamadoge
The major issue with late investors in Bitcoin is that many feel they have already missed most of its largest gains.
A $100,000 Bitcoin would take an incredible amount of money to reach but would only represent a 5x from its current price. While that is certainly not to be ignored, investors can find better returns elsewhere in the crypto space.
Tamadoge is one such alternative that saw early investors make 19x returns after it listed on exchanges for the first time at the end of September.
The price has since retraced but looks set for a breakout again in the coming weeks.
The first part of its NFT collection – which will form the center of its play-to-earn universe – has just been released and development is continuing on the Tamagotchi-style game, P2E arcade mini games and an augmented reality app.