Bitcoin BEP2 price prediction: Is a reversal on the way?
Pegged to the price of Bitcoin, BTCB experienced all time highs and punishing lows recently
Falling under the stablecoin umbrella, wrapped tokens are backed by cryptocurrency reserves (usually BTC) rather than the US dollar more commonly used by Tether and similar tokens. Stablecoins continue to rise in popularity, driven by the need for cross-chain interoperability in DeFi transactions. Coin Market Cap notes that the total market capitalisation of stablecoins stands at more than $166.6bn, with a daily trading volume exceeding $82bn.
Due to their popularity and importance in propping up the cryptocurrency market, stablecoins attract significant regulatory scrutiny. Following Tether copping a $41m fine from the Commodity Futures Trading Commission (CFTC) for lying about the size of its reserves, CoinDesk reported that “stablecoins have also caught the attention of regulators and policymakers around the world, including US Securities and Exchange Commission (SEC) Chairman Gary Gensler, US Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell.
In the following Bitcoin BEP2 price prediction, we break down the token’s latest trading performance and digital forecaster price targets. If you would like to get to grips with the specifics of the Bitcoin BEP2 project first, make sure to head over to our comprehensive guide. Now onto the BTCB price prediction.
Key token facts: A quick glance
There are currently 105,113 BTCB in circulation, making for a market capitalisation of $4.42bn. Since supply is contingent on the exchange volume of BTC holders, there is no maximum supply (theoretically speaking, BTC’s maximum supply of 21 million is the limit).
BTCB’s price is pegged to BTC, which is currently trading at around $42k.
Over a recent 24-hour period, $36.63m in BTCB was traded, being 0.8% of market capitalisation. BTCB is available via Binance’s “Binance Bridge” function.
Latest trading activity
Since BTCB’s price is tied to Bitcoin’s performance, the wrapped token experienced similar highs and lows over the past 12 months.
Reaching an all time high (ATH) of $69.05k on 10 November, BTCB finished the year in underwhelming form, losing a third of its value to end 2021 at a price of $46.2k.
The new year brought little positive news. Following the US Federal Reserve’s announcement of impending interest rate hikes, markets across the board took a tumble. BTCB lost 5.18% in value on 5 January alone. While some recovery was witnessed in the days following 8 January, a bearish engulfing pattern on 13 January stemmed the tide.
We can see a bearish moving average (MA) crossover as far back as 23 December as the 50-day MA shot below the 100-day MA. The gap has only widened since. BTCB continues to trade well below the trend line.
If a downtrend persists, we could see BTCB test the $39.69k support line. If the bulls manage to mount a defence, the next lines of resistance to look out for are $46.04k and $50.78k. A break above could see the bulls aiming to recover the ATH of $69.05k, which could serve as a potential Bitcoin BEP2 price prediction for 2022.
There is some positive trading activity observed throughout 14 January. The moving average convergence divergence (MACD) line saw a positive crossover, signalling a bullish advantage throughout the day.
Please bear in mind that the above is presented as neutral information. Currency.com is not your financial advisor and you should always conduct further research before placing an investment.
The ATH will be surpassed within 12 months according to Wallet Investor’s Bitcoin BEP2 coin price prediction, presenting a price target of $75.32k. Looking further ahead, the Bitcoin BEP2 price prediction for 2025 caps out at $223.5k. That all-important $100k target could be hit by February 2023.
Digitalcoin’s Bitcoin BEP2 price prediction targets are $57.74k for 2022, rising to $93.73 by the end of 2025. Further down the line, the digital forecaster’s Bitcoin BEP2 price prediction for 2030 starts a $186.99k going into the next decade.
Using 23 technical indicators, Coincodex’s Bitcoin BEP2 price prediction is 61% bearish against 39% bullish.
Is Bitcoin BEP2 a good investment?
You should take into account that BTCB has a specific utility as a wrapped Bitcoin token for use on Binance’s DeFi ecosystem. Your Bitcoin is held in a central reserve while you hold the BTCB. The price of BTCB is pegged to the price of Bitcoin. For these reasons, you should ask yourself what benefits a wrapped token has over your original Bitcoin supply
Will Bitcoin BEP2 go up?
The BTCB price prediction mirrors that of Bitcoin, thus performance is contingent on Bitcoin’s price. Most analysts believe that Bitcoin will continue to rise in value as the currency matures. With that in mind, recent events have shown how volatile bitcoin is. Always invest with caution.
Should I invest in Bitcoin BEP2?
As a wrapped token, Bitcoin BEP2’s utility is different to that of other cryptocurrencies. An equal reserve of BTC is required to be held in Binance’s central reserve. As such, you should determine what are the benefits in holding BTCB over BTC. As always, conduct your own research before investing. This article is for informational purposes and should not be taken as financial advice.