Bitcoin price has been recovering after a big drop in the low $30,000s. At press time, BTC is trading at $37,774 with a 1.9% gain in the last 24 hours and could see more gains in the near term.

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BTC in a downtrend on the 4-hour chart. Source: BTCUSD Tradingview

Bitcoin’s most recent rally could be tied to relief in the traditional market. At time of writing, the S&P 500 Index posts a gain of +105 points or 1.44% on the 4-hour chart.

The cryptocurrency has shown high levels of correlation with US stocks and could continue to trail them in the near term. In that sense, Bitcoin bulls could find support in a sustained easing rally in equities.

Data from Material Indicators shows some resistance, on lower timeframes, above current BTC price levels. Therefore, $39,000 and $40,000 have become important resistance levels that need to be turned into support.

In the event of a further downside, Material Indicators records around $3 million worth of Bitcoin buy orders near $36,000. These levels could act as critical support in a bearish scenario for lower time frames and should be held to avoid a retest of previous lows near $33,000.

In the coming months, the bullish momentum could resume in full force, according to a report by Finder. After consulting with a panel of 33 experts on possible Bitcoin price scenarios on multiple time frames.

The consensus among these experts is bullish, a prediction that defies current market sentiment. The potential increase in interest rates by the US Federal Reserve could operate as a headwind for Bitcoin. At least this seems to be the dominant narrative for some market players.

A Bitcoin Rally Before Another Multi-Year Bear Market?

As seen below, pundits have progressively shifted their bias from bullish for most of January, to neutral in the past week, and bearish for the week of February 6, 2022. The Potential Impact of Rising Interest Rates by the FED, experts say, will continue to be one of the main concerns of investors during the first part of the current year.

(The) first half of 2022 will be dominated by concerns about higher interest rates, which will affect all risk assets, including Bitcoin. We would not be surprised to see Bitcoin decline a further 30% from current levels.

In that sense, more than 50% of the interview panel believe that Bitcoin could emerge victorious in a scenario of rising interest rates. Experts believe that the price of BTC will peak at $93,717 in the coming months, only to return to $76,360 by the end of 2022.

Source: Finder Bitcoin Price Predictions Report

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The BTC price rally will be fueled by higher inflation. As NewsBTC has been reporting, Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, has a similar view, claiming that the cryptocurrency will start to outperform stocks and other risk assets. Finder panel added:

It is possible that the asset bubble that the Fed created by keeping interest rates close to 0% for over a decade could spill over into Bitcoin. However, the cryptocurrency has fundamentals similar to gold and confidence to weather the storm better than its peers.

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