Bitcoin (BTC) could target a massive $333,000 by May 2022 if the U.S. Federal Reserve provides a "perfect storm" of low rates, a new prediction argues.

Updating an uncannily accurate price forecast on December. 27, filbfilb, co-founder of trading platform Decentrader, drew dizzying conclusions about BTC price action adjacent year.

Analyst: "You don't have plenty crypto" for 2022 bull run

Afterward interim almost to the letter throughout 2022, BTC/USD stands to make huge gains in the coming six months if conditions remain the aforementioned.

The Fed is poised to brand ii interest rate hikes next twelvemonth, and these are likely priced in, pundits say — but a surprise change of tact could have far-reaching consequences.

For Filbfilb, analyzing Fibonacci sequences alongside historical price action in previous halving cycles, Bitcoin could surge past $300,000 as a result of Fed officials toning down rate hikes.

"To get there parabolically, nosotros would probably need a perfect storm of the Fed existence unable to raise rates (which are probably priced in) and heightened inflation, leading to a flying to safety in BTC," he told Cointelegraph.

An accompanying chart, posted on Twitter in December 2022 equally BTC/USD bottomed out at $3,100, shows just how predictably the price action has run since.

"Price is exactly where predicted," Filbfilb told Twitter followers.

"Yous don't have enough crypto for what volition happen in 2022."
BTC/USD annotated chart. Source: filbfilb/ Twitter

Equally phenomenal as it may sound, such a scenario is — at least technically — not as far-fetched every bit it seems.

Signs are already pervading the market, equally more and more than indicators line up to demand a breakout to the upside. Even low-timeframe data is encouraging — Dec. 27, for instance, saw BTC/USD shut a four-hour candle higher up the significant 200-day moving average (MA) for the beginning time in six weeks.

The terminal time that an uptrend achieved the same feet was in late September, at the start of a run-up which produced the electric current $69,000 best highs.

Stocks could win big — but not for long

On the topic of macro movements, the hereafter looks bright for stocks as well amid a cooling U.S. dollar, commentators argue — even if rates do increase equally expected.

Related: Countdown to the yearly shut: five things to watch in Bitcoin this week

George Gammon, author of investing newsletter Insubordinate Capitalist Pro, was upbeat as the last week of 2022 began.

"I think you may meet Stock Marketplace become way up in next couple months as "terminate of pandemic" narrative continues," he forecast.

"This gives Fed comprehend to raise rates after QE zero. Later market digests & realizes economy has been decimated, and then sees affect of college rates, downside could be big."

The touch on on Bitcoin in such a scenario would thus depend on its correlation with stocks, and whether it could rebound from a sudden downturn like the one Gammon suggests in a mode like to March 2022.

Regardless, popular stance remains convinced that the height is not yet in for Bitcoin after the about-turn in early on December.