Bitcoin Price Prediction, 2 Altcoins to Watch: Token Metrics Analyst

0
  • Bitcoin has been very volatile in 2022 and is looking for direction as summer approaches.
  • Bill Noble, senior market analyst at Token Metrics, sees a wide trading range for the token.
  • Two altcoins should be able to succeed regardless of the crypto market situation, he says.

Bitcoin is currently changing hands for around $41,000 – a level that sits almost exactly halfway between its 2022 high ($47,938) and its 1-year low ($33,503).

With bitcoin prices rising dramatically over the past year, no one knows which of these levels the world’s largest digital asset will retest first – not even seasoned crypto tipsters like Bill Noble, Principal Market Analyst at Token. Metrics.

Bitcoin price since the beginning of the year

Bitcoin went on a roller coaster ride in 2022

Markets Insider


After carefully analyzing the crypto market charts and catalysts, Noble told Insider in a recent interview that bitcoin is also roughly halfway between its current bullish and bearish price targets, which are respectively of $56,000 and $28,000.

In the upside scenario, bitcoin shakes off concerns about rising interest rates that have crushed investor sentiment and climbs to $56,000 before the end of the year. Then, in 2023, the token finally surpasses the highly anticipated milestone of $100,000.

Token Metrics Chart


Bill Noble, Token Metrics


“Once the global financial stomachaches are over, I believe in 2023 crypto will emerge – even if it’s later in 2023 – as the ultimate financial investment for the future,” Noble said. .

In the less rosy scenario, Nobel said the war in Ukraine, 41-year-old high inflation, and central bank policy error put even more pressure on cryptocurrencies. But ultimately, Noble thinks even this stressful result would be a long-term buying opportunity.

“Crypto can go down and then there’s a whole bunch of people waiting to buy it there,” Noble said.

How to prepare for the “worst-case scenario” for bitcoin

Although Noble said $28,000 is a “more likely level” for bitcoin to bottom out in a downturn, he added that the “worst-case scenario” for the token is $20,000. Bitcoin has not fallen below $30,000 since January 2, 2021, according to CoinMarketCap.

This scenario will only materialize if history repeats itself and a bond market rout spills over to the stock market, Noble said, citing 1987 as an example. Thirty-five years ago — more than two decades before bitcoin existed — the S&P 500 crashed 22.6% in a single session. The chaos came after a multi-month bond selloff pushed yields, which move inversely to prices, higher.

Fast forward to 2022, and bonds have been gutted as the


Federal Reserve

begins to rapidly raise interest rates to finally slow what has been “untreated inflation”, as Noble put it. Higher rates mean there are more alternatives for investors to invest their money in, making risky assets like stocks and cryptocurrencies less attractive and possibly subject to a downturn.

“The bullish picture for crypto is that crypto is simply trading in a range, like stocks did in the last bond crash in 1994,” Noble said. “The worst-case scenario for crypto is that rising bond yields parallel what happened in 1987 just before the stock crash.”

Noble continued, “Here’s the balance: if stocks crash, we think crypto is obviously going to be dragged down with it. But crypto will come back much faster.”

Although falling stocks could send bitcoin down to levels last seen in 2020, Noble said he was confident this would not be the start of a dreaded “crypto winter.” The case for digital assets is “much clearer” than it has been in past crises, Noble said, citing a survey published April 11 that showed financial advisers believe clients should have 6% of their crypto money.

Most crypto investors should keep a long-term mindset and focus on the oft-repeated adage “time in market, not time in market,” according to Noble. However, the analyst suggested that crypto traders could make a quick buck by following another saying: “Sell in May and walk away.”

Noble said that if a crypto downturn occurs, it will most likely be during the summer. Having cash ready to deploy can be smart, Noble said, but he admits the unpredictability of inflation and how the Fed will respond to it complicates the picture.

2 Best Altcoins to Consider

Just as falling stocks would drag bitcoin down, any weakness in the original digital asset would have a huge influence on altcoins or smaller cryptocurrencies.

In September, Noble expressed his affection for three lesser-known tokens: AirSwap (AST), Eden (EDEN), and Immutable X (IMX). These pieces “have had their day” but have since faded, Noble said. Now, he recommends crypto investors to be choosy and manage their risk with altcoins.

Below are the two altcoins Noble is bullish on right now, along with the symbol, market cap, use case, and crypto analyst thesis for each.

Share.

About Author

Comments are closed.