Bitcoin could go 'parabolic' to $333,000 if this fractal moves

Bitcoin (BTC) could reach its massive $333,000 target by May 2022 if the Federal Reserve delivers a "perfect storm" of low interest rates, a new forecast suggests.

On December 27, Filbfilb, co-founder of trading platform Decentrader, updated an unmistakable price prediction, and he came to a surprising conclusion about the BTC price trend in the next year.

Analyst: 'You Don't Have Enough Crypto' For 2022 Bull Market

After performing almost on schedule throughout 2021, if the situation remains unchanged, BTC/USD will make huge gains in the next 6 months.

Experts say the Federal Reserve may already be pricing in two rate hikes next year, but a surprise change in strategy could have far-reaching consequences.

Filbfilb analyzed the Fibonacci series and historical price movements of the previous half-cycle, and believes that as Fed officials reduce interest rate hikes, the price of Bitcoin may soar above $300,000.

He told Cointelegraph: “In order to reach parabolic levels, we may need a perfect storm of the Fed’s inability to raise interest rates (which may already be priced in) and higher inflation, leading to safe-haven Bitcoin.”

In December 2018, when BTC/USD bottomed out at $3,100, a graphic was posted on Twitter showing the predictability of price action since then.

"Prices are exactly as expected," Filbfilb told followers on Twitter.

"You don't have enough cryptocurrency for what's going to happen in 2022."

Shocking as it sounds, such a scenario -- at least technically -- isn't as far-fetched as it might seem.

There are already signs in the market as more and more indicators call for a breakout to the upside. Even the low time frame data is encouraging - for example, on December 27, BTC/USD's four-hour candle closed above the important 200-day moving average (MA), a six-week first.

The last time an uptrend reached the same level was at the end of September, when Bitcoin was just starting to rise to its current all-time high of $69,000.

Stocks could be headed for a big jump, but not for long

On the macro front, commentators see a brighter outlook for stocks amid a weaker dollar -- even if rates do rise as expected. George Gammon, author of the investment newsletter "Rebel Capitalist Pro," started the final week of 2021 on a bullish note.

"I think you'll probably see stocks continue to move higher in the coming months as the 'pandemic is over' narrative continues," he predicts.

“This provides insurance for the Fed to raise rates after QE goes to zero. There could be a lot of downside to seeing the impact of higher rates after the market has priced in and realized the economy has been destroyed.”

So, in this case, Bitcoin's impact will depend on its correlation with stocks and whether it can bounce back from a sudden downturn, as Gammon suggests, in a manner similar to March 2020.

Regardless, the prevailing opinion remains that Bitcoin has yet to peak after its big reversal in early December.