Bitcoin Predicted to Surge Between $32K - $50K in 2023 Amid Market Unpredictability
Summary:
Boosted by a banking crisis and the potential approval of a Bitcoin exchange-traded fund in the USA, Bitcoin's value has grown over 70% this year. Some analysts suggest a resurgence similar to the one seen in the 2017-2020 period could push Bitcoin's price to $50,000 by the end of 2023. However, due to tightened US central bank policies and decreased market liquidity, others anticipate a potential year-end value closer to $32,000. Constant changes in miner's profitability, liquidity, and technical patterns all contribute to the market's unpredictability.
Bitcoin has seen an increase of over 70% this year, thanks to a banking crisis and anticipation around the approval of a direct Bitcoin exchange-traded fund in the USA. Let's discuss whether this growth in Bitcoin value will continue through 2023 and identify potential future pricing.
Alluding to models predicting a Bitcoin price target of $130K after the 2024 halving, some similarities can be drawn between the current market trend and Bitcoin's performance during the 2017-2020 period. Some speculate, including renowned Bitcoin analyst Stockmoney Lizards, that a significant upward price breakout could occur, similar to what happened in 2020.
This breakout back in 2020 led to a remarkable surge in Bitcoin value, reaching a record $69,000 in November 2021. If history were to repeat itself, we might see Bitcoin prices rising between $45,000-50,000 towards the end of this year.
However, the current Bitcoin trend is facing resistance due to the US central bank's tightening policy, which has resulted in decreased market liquidity. Since peaking in April 2022, the value of Bitcoin has dropped by 40% following the Federal Reserve's balance sheet's highpoint.
Leading bank, Standard Chartered, also anticipates Bitcoin reaching $50,000 by the end of the year. Geoff Kendrick, their global research head and chief strategist, suggests that the enhanced profitability of miners might lower Bitcoin selling pressure, ensuing in less supply against potentially increasing demand.
Interestingly, Bitcoin possessed by miners saw a substantial increase amid the Ordinals hype in May 2023, which has remained stable since. However, a competing technical pattern points to a potential end-of-year Bitcoin value near $32,000, which is also a recent high.
Currently, Bitcoin is navigating the breakout phase of the prevailing Bump-and-Run-Reversal (BARR) Bottom pattern. This pattern, previously mirrored accurately in the case of Dogecoin in June 2022, suggests a potential increase of 12.75% by the closure of this year, provided the pattern is accurately executed.
Please bear in mind that this article isn't meant as investment advice, and it's always recommended that potential investors carry out their research before making any investment decisions, as they come with inherent risks.
Published At
10/18/2023 2:34:34 PM
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