According to the 4-hour time frame, bitcoin has reached $24,4350 thrice now. Yet, the third attempt to break through the important barrier failed. Overall, the digital asset has been trading sideways for over a month now. It barely goes up within the channel and shows no signs of consolidation. Anyway, it should first break through $24,350. As a reminder, in recent months, bitcoin has been retracing the same way the euro does. In other words, the instrument trades sideways and barely grows within the channel. This means that bulls are not ready to buy. Therefore, we may expect a strong bear run any time soon. The outflow of liquidity from the stock market, as well as the crypto market, is likely to continue in 2022.
Meanwhile, Galaxy Digital CEO Mike Novogratz says BTC will hardly go above the mark of $30,000 this year. At the same time, he does not see the flagship cryptocurrency falling below the range of $20,000. He believes that the future of the crypto market is now in hands of the Federal Reserve. However, given the state of the American economy, the regulator is likely to stick to its aggressive monetary stance. So, bitcoin will hardly show strong growth while interest rates are being raised. Therefore, it would be nice if BTC was in the range above $20,000 for as long as the Federal Reserve tightened rates, Mike Novogratz said.
In our view, Novogratz is quite optimistic about the future of the crypto market. Clearly, in light of current conditions, it would be great if the lower limit for the bitcoin price stood at $20,000. But it would be too good to be true. Still, we should give credit to the Galaxy Digital CEO for not trying to manipulate the crypto market. Indeed, such attempts still take place when everyone is invited to buy BTC because it could soon soar to $100,000.
In the 4-hour time frame, BTC is still retracing up slightly. The price is likely to descend in case of consolidation below the ascending channel. The first bearish target stands at $17,582, in line with the latest swing low. The common target for two time frames is seen at $12,426.