It's been a bad start of the year for Bitcoin (BTC-USD), and 2022 could bring in a bit more pain.<\/p>\n
While some bulls continue to forecast $100,000, one strategist doesn't see that happening this year - or next.<\/p>\n
\"Long term, I love cryptocurrency, I love Bitcoin. But the charts and I'm a technician are just not showing that,\" Gareth Soloway, president and CFO of InTheMoneyStocks.com told Yahoo Finance Live.<\/p>\n
\"Bitcoin for me, has a nasty head-and-shoulders pattern on it. Believe or not, in early 2022, or early 2023, you could see a move down sub-$20,000 in Bitcoin,\" he added.<\/p>\n
\"We've seen Bitcoin hovering between $52,000 and $46,000 for the last month. And it keeps hitting on that $46,000 level. So on a technical basis, if you break below that $46,000...you are going to see downside to about $42,000, the low from early November.\"<\/p>\n
The digital coin broke a key support level on Wednesday following the latest FOMC minutes which highlighted a more hawkish discussion among Fed officials than what markets had anticipated.<\/p>\n
Soloway highlights another pattern. While the Dow and S&P 500 (^GSPC) saw a Santa Claus rally coming into the new year, Bitcoin has continued to falter in the last month. It's now more than 35% off its all time high levels from November.<\/p>\n
\"There's some little disconnect with cryptocurrency as a riskier asset, and I do worry that, it, including Ethereum (ETH-USD) will start to see further downside,\" said Soloway.<\/p>\n
The technician predicts Gold (GC=F) will outperform the S&P 500 and Bitcoin for this year. However long term, he still believes Bitcoin will be the place to be.<\/p>\n
\"You look 5 years out, Bitcoin is easily at $100,000, maybe even $250,000. But for me, I'm looking at the leverage in the system including the stock market,\" said Soloway.<\/p>\n
The Federal Reserve's plan to reduce its balance sheet and likely raise interest rates this year \"is going to take a lot of money and liquidity out of the system.\"<\/p>\n
Story continues<\/p>\n
\"Bitcoin and cryptocurrency are going to see their dot-com moment over the next year or two,\" he added.<\/p>\n
Ines is a markets reporter covering stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre<\/p>\n
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Bitcoin will see its 'dot-com moment' over next year or two: Charts technician - Yahoo Finance<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" It's been a bad start of the year for Bitcoin (BTC-USD), and 2022 could bring in a bit more pain. While some bulls continue to forecast $100,000, one strategist doesn't see that happening this year - or next. \"Long term, I love cryptocurrency, I love Bitcoin. Continue reading