Standard Chartered, one of the world's largest banks, predicts a surge in Bitcoin to historic highs by the end of 2022. What supports this bold forecast ? Let's delve into the technical analysis and crypto market trends.
Standard Chartered, one of the leading international financial institutions, recently published a highly optimistic forecast regarding the Bitcoin price. According to the bank, the flagship cryptocurrency could reach $135,000 by Q3 2022, then peak at $200,000 by the end of the year.
This forecast is based on a comprehensive technical analysis of the cryptocurrency market. Standard Chartered’s analysts highlight several key factors to justify their extremely bullish outlook. Let’s break it down.
From a technical perspective, the evolution of the Bitcoin price has followed a clearly positive underlying trend since the creation of the cryptocurrency in 2009. Despite numerous short-term fluctuations, BTC’s price has seen remarkable long-term progression, displaying staggering gains over several consecutive years.
This long-term bullish dynamic can be explained by Bitcoin’s growing adoption worldwide, whether among individuals, businesses, or even nations. The demand for this “digital gold” continues to intensify, naturally driving prices upward.
Beyond the underlying trend, Standard Chartered’s analysts also identify a “supercycle” phenomenon in the Bitcoin market. This concept refers to particularly powerful and prolonged bull cycles, far exceeding previous shorter ones.
According to them, Bitcoin is currently at the beginning of a supercycle that could propel it to price levels never reached before. Previous Bitcoin network halvings, which mechanically reduced the supply of new units, would constitute major catalysts fueling this fundamental movement.
Finally, Standard Chartered analysts emphasize that the current macroeconomic context could also favor a Bitcoin surge in the coming months.
The persistence of high inflation, combined with the prospect of interest rate hikes by central banks, weakens traditional financial assets. In this context, Bitcoin could be perceived as a safe haven and attract new institutional investors seeking returns.
Standard Chartered’s BTC forecast demonstrates the growing optimism surrounding this cryptocurrency. With price targets of $135,000 and $200,000 by the end of 2022, the bank displays an extremely positive view on BTC’s upside potential.
According to the BTC Cycle Top Indicator, Bitcoin could indeed reach a peak beyond $171,000 in the coming months.
Nevertheless, it’s important to keep in mind that the cryptocurrency market remains inherently volatile and risky. Despite the favorable technical trends identified, there’s no guarantee that Bitcoin will reach these heights within the announced timeframe.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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