Bitcoin had its price rallying by over 2021 despite bearish attacks from China, and market participants might expect more gains in the upcoming year.
The broad crypto market has had an excellent year in price actions and adoption. Though the recent bearish move, most digital tokens saw their value soaring massive since January 2021.
Bitcoin Gains Over 70% in 2021
Bitcoin remains the dominant digital coin globally as 2021 nears an end. The digital currency recorded a massive value increase within the last 52 weeks, outshining several top financial assets like Gold in the period.
Bitcoin has surged 72% over the past year. The coin started 2021 at $32K after challenging the 2017 ATH of $20K as 2020 approached an end. BTC extended its last year’s run in 2021, attaining an ATH past $64K during April sessions.
The rally came as cryptos saw continued adoption. The prices rallied higher as corporate entities entered the space. Tesla introduced Bitcoin payments; MicroStrategy extended its BTC accumulation, while El Salvador prepared the bill to legalize $BTC as legal tender.
The surged adoption by retail and institutional investors had BTC hitting the $64K ATH. However, BTC underperformed from May to September. China largely contributed to the downtrends as it cracked down on crypto-related undertakings.
The crypto ban by China saw BTC losing over 50% of its price, plummeting beneath $30K in July. Also, Elon Musk attacked BTC, citing massive electricity usage and banned crypto payments, contributing to the bearish performance.
However, BTC bounced again in November as crypto miners settled to regions with ‘friendly’ policies. Moreover, El Salvador’s BTC adoption added a positive sentiment to Bitcoin. The crypto rose gradually to touch an ATH of $69K in November as the crypto market cap explored a new peak of $3.0 trillion. Nevertheless, the alt dropped, trading around the $50K mark at this writing.
BTC 2022 Technical Forecast
BTC’s technical indicators remain negative for now because of the underperformances Bitcoin had over the past few weeks. MACD remained in the bearish territory as the RSI depicts selling momentum at the 46-level.
However, BTC is performing well in a long-term perspective. The coin trades beyond the 200-day SMA at $47,270. Meanwhile, technical indicators might improve in the weeks or months to come as everything seems to point to remarkable surges in 2022.
Analysts expect China’s impact to end in the coming year, booting mining hash rate and BTC price. That will see the RSI and MACD in a positive area. WalletInvestor sees Bitcoin ending 2022 beyond the $80,000 mark.