Bitcoin 2024 Price Projection: Bullish Bias Returns Amid Poor US Inflation Numbers

In an unexpected turn of events for Bitcoin (BTC) and the broader crypto market, bullish sentiment has returned, helping the market stall the previous bearish cycle.

The benchmark cryptocurrency recorded its most extended bearish movement since 2018 in the opening week of January, as many analysts warned that a massive sell-off could ensue once the cryptocurrency breaks beneath the critical $40,000 psychological base.

At press time, Bitcoin trades at $43,800, after peaking at $44,300 late yesterday. According to CoinMarketCap statistics, BTC traded up by 1.3% over the past 24 hours and 2.19% in the last seven days.

Notably, the benchmark cryptocurrency increased in value following a grim inflation report from the world’s largest economy, after economic data showed that the US inflation rate for December came in at 7%, this highest inflation figure in four decades. Even though economists predicted this outcome a long time ago, the crypto market and other financial markets reacted violently to it.

Analysts explained that the depreciating value of the US dollar is one of the primary reasons why investors flooded BTC, which is often described as “digital gold” because of its limited quantity and inflationary hedge property.

However, investors have been advised to exercise caution in their flow into the crypto market as the Federal Reserve is expected to increase its interest rate peg at least three times in 2022 as a means to battle rising prices.

Annual Forecast for Bitcoin (2022)

Since it peaked at the $69,000 all-time high on November 10, 2021, BTC has maintained a steady downward trajectory that bottomed out, for now, on January 10. That said, the benchmark cryptocurrency is currently on a rebound from the crash, as it received support from a combination of technical points coalescing around $40,000.

Notably, the flagship cryptocurrency now coasts around the critical trendline that has guided the bearish spiral since early November. That said, a sustained control above this line in the coming days and weeks should help BTC quell the bearish pressure and reposition to tap into the previous bullish cycle. This bullish projection receives support from the fourteen-month-long ascending trendline, the July pivot area, and the $40,000 support line.

It would be interesting to see how the price action of BTC plays out over the coming days and weeks as bullish sentiment returns. Personally, I expect to see BTC hit the popular $100,000 price tag in 2022.

Meanwhile, my resistance levels are at $45,000, $46,000, and $46,300, and my key support levels are at $43,000, $42,000, and $41,000.

Total Market Capitalization: $2.10 trillion

Bitcoin Market Capitalization: $837.8 billion

Bitcoin Dominance: 39.8%

Market Rank: #1