I hate to say 'I told you so', but the market moved exactly as I predicted it would. As an avid follower of technical analysis, I like it so much, because, when correctly interpreted, it can reveal some valuable insights into the future market moves.
The crypto world seems to be breathing a cautious sigh of relief now that Bitcoin has gained 14% since the beginning of February after falling 42% from its peak on November 10, 2021 to January 31, 2022.
I predicted the correction was underway, and we'd see the trend reversal around January 24, and that's exactly what's happening currently. BTC briefly touched the bottom at $32,981 that day, and then went on to recover.
Honestly, I didn't imagine the chart would be able to predict the exact date at which the recovery would start, but it did.
The charts below are the corresponding charts from my previous analysis and the current one:
At the time of writing this article, Bitcoin traded at $44,200, up 4.3% since the start of the week.
Considering that the latest correction was similar to the one in May-July, it makes sense to expect a similar leap to new all time highs. The current price recovery is expected to drive BTC above $73,000 in late May or early June.
Although the technicals are important, it is also crucial not to ignore the fundamentals.
Keep a watchful eye on stocks and the Fed
Taking stock market performance into account is crucial. The big rebound in equities led by strong earnings in some of the technology giants may have been a result of Wall Street overreacting to the Fed's hawkishness - as reflected in Bank of America's call for seven rate hikes.
What to expect this year
Bitcoin will always be volatile, but that won't stop more people in 2022 from adopting it as a digital asset. Due to institutional involvement, crypto will continue to mature as an asset class.
A report published by Genesis, a digital brokerage serving institutional investors with assets exceeding $10 million, indicates that its spot trading volume grew to $116.5 billion in 2021, a 463% increase over 2020. It anticipates the trend to continue in 2022.
The larger players will therefore seek clearer crypto regulations, which would help them establish confidence in the industry. So, crypto regulation developments are the next important thing to watch.
The example of El Salvador may inspire other countries to adopt Bitcoin as a legal currency to enhance the efficiency of their financial and economic infrastructures. If that happens, the crypto market will soar.
The top 5 cryptos with untapped potential
The following five tokens and coins may have slipped your radar, but I believe they have a lot of potential that hasn’t yet been unlocked.
FOAM is a proof-of-location protocol on Ethereum. This project aims to create a consensus-driven map of the world, which will empower a fully decentralized web3 economy with verifiable location data.
FOAM is building an independent network of radio beacons that is permissionless and privacy-preserving, capable of providing secure location verification services, independent from external, centralized sources. FOAM Token holders can curate Geographic Points of Interest, validate new candidates and verify the map by visiting real world locations.
At the time of writing, FOAM token traded at $0.06709, up 58% over the past seven days, and posting a 148% annual gain.
Infinitecoin is a Litecoin-based cryptocurrency, so it uses the scrypt proof-of-work algorithm. It is a decentralized and open source global payment network. Comparing Infinitecoin to other major cryptocurrencies, it has faster confirmation times and better storage efficiency.
At last check, IFC traded at $0.00014122, a weekly gain of 45.5% and a 307% increase year-on-year.
ChangeNOW Token (NOW)
NOW is a native digital asset from ChangeNOW.io, an instant exchange and processing platform, and is used as an internal currency for the platform’s asset listing fees. Users can also get cashback in NOWs and earn rewards through staking their NOW tokens. With NOW Token at the core of ChangeNOW's expanding ecosystem, it is poised to grow along with it.
At the time of writing this article, NOW traded at $0.071541, up 23.6% for the past seven days.Year-on-year, it rose 139%.
A public blockchain and smart contract platform, Proton (XPR) is designed for both consumer purposes and peer-to-peer online payments. A secure identity and financial settlements layer make it possible for users to link real identities and fiat accounts, withdraw funds, and purchase crypto, allowing them to use it seamlessly within apps.
The price of XPR has been steadily rising. It was worth $0.01496020 at the time of writing, up 55% over the past week and posting a 149% annual gain.
DERO is the first-ever crypto project to combine a DAG block structure with a proof-of-work blockchain using Homomorphic Encryption technology. The concept is meant to be a revolutionary improvement over existing privacy coins like Monero (XMR) or Z-Cash (ZEC). Dero plans to accomplish this by combining the best elements of both consensus mechanisms.
DERO traded at $12.14 at the time of writing, an increase of 68% week over week. It has gained a whopping 1,280% in a year.
This article has been prepared by ChangeNOW for information purposes only. Any opinions, news, research, analyses, prices, charts, or other information contained herein are provided as general market information and do not constitute investment advice. ChangeNOW assumes no responsibilities for errors, inaccuracies, or omissions in this article, nor shall it be liable for damages arising out of any person's reliance upon this information. ChangeNOW.io is under no obligation to update or keep current the information herein. Past performance is not indicative of future results.