Many possible scenarios abound for Bitcoin in 2022. It could be a consolidation year or the second leg up of the bull market followed by a bear market. DeVere Group CEO says it is likely three more countries will make Bitcoin legal tender in 2022. El Salvador President Bukele says Bitcoin will break $100K and add two more countries making it a legal tender in 2022. Meanwhile, the number of Bitcoin addresses with a non zero balance continues to grow fast regardless of market sentiment:
One indisputable thing about Bitcoin, is that it’s adoption is so fast, that it will outpace the adoption of the internet in the 90’s. That should happen in the next five years or so. Therefore, can one assume the consolidation Bitcoin has been in for two months now, is temporary and will not last? We think so. At some point, Bitcoin will break out or break down. Volatility is the next aspect of price action we will see. Everytime Bitcoin gets this stable for this long, volatility ensues. We know it will happen, just when is the question.
The next chart below shows the long term trajectory of the 50 EMA and the 200 EMA for Bitcoin. It is called the liquid index for Bitcoin. Based on this chart it could take a while for a breakout from where Bitcoin is. This gives one perspective on this consolidation, accumulation period it is in right now:
This next chart shows the price action more from a bottoming perspective. We cannot tell which chart view is most accurate because the future direction of the price is unclear now. However, the RSI is obviously bottoming in the chart below. That COULD be a good sign: