Inflation To Push Bitcoin (BTC) and Risk Assets on One Last Leg Higher This Year: Crypto Analyst Justin Bennett
Cryptocurrency analyst Justin Bennett says he expects inflation to taper off but not before investors who own risk assets see their portfolios rise in value once more.
Bennett tells his 98,300 Twitter followers that cryptocurrencies, equities and commodities are likely to surge, but the rally wont last forever.
“I continue to think we see one last leg higher for risk assets in 2022 as inflation numbers start to tick lower later this year.
It’s an unpopular opinion, but that makes it all the more likely.”
The analyst includes a graphic from the New York Fed Survey of Consumer expectations while observing,
“But transitory inflation is just a meme, right?”
Bennett next cites a recent Reuters article that says consumer inflation expectations have gone down for the first time in 16 months. He says,
“It’s already starting…”
The chart guru next looks at how Bitcoin (BTC) stacks up against the dollar index (DXY), which compares the USD to a basket of other fiat currencies.
He provides a graphic highlighting BTC peaks versus DXY valleys over the last 11 years and says,
“DXY matters for BTC.”
Moving on to the prospect of a “bearish engulfing pattern,” which usually signals that lower prices are on the horizon, Bennett says,
“If the DXY is going to make good on the bearish engulfing week from early February, this is where I’d expect it to start.
Above 97.30 is bullish. Below 95.13 is bearish.
We want the latter for cryptos to strengthen. Short-term target for BTC.”
The crypto guru concludes his analysis by looking at the Bitcoin chart dating back to November of 2021. He thinks BTC is primed for a rally that will reclaim its New Years Day price of $46,200 before pushing past $50,000 once again.
“BTC time to take out the yearly open at $46,200.”
At time of writing, Bitcoin is up 3.45% to $44,352.
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Featured Image: Shutterstock/prodigital art/Konstantin Faraktinov
