Bitcoin Price Forecast 2023

Bitcoin Price Forecast 2023

 

 

 

 

Quite a lot of things are happening in 2022, so let's recap the three main events that caused the price of Bitcoin (BTC) to dive sharply throughout the year. These are the three main events that caught investors off guard in 2022:

 

1. Bitcoin's price signals the end of the bull run: BTC reached an all-time high of $68,997.75 on November 8, 2021. But this huge crypto resulted in a major change in the market structure by making a lower low on the weekly timeframe at $32,995 on January 24. This step confirms the start of the bear market.

 

2. Terra-Luna-3AC Collapse: As Bitcoin's price gets lower, it was followed by the fall of the algorithmic stablecoin Terra and its constituents in May. This move caused BTC to lose 30% of its market value in less than two weeks. As a result of this sudden market crash, an over-tapped crypto hedge fund, Three Arrows Capital (3AC) faced an untimely death, which pushed the market down from around $30,000 to $17,600.

 

3. FTX disaster: The latest and fresh wound the crypto market has suffered is the bankruptcy of the FTX exchange and its related subsidiaries. The collapse of Sam Bankman-Fried's empire took place at the hands of his opponent and rival Changpeng Zhao (CZ), who was the founder of Binance. As a result of these three events, the price of Bitcoin fell 77.57% from its all-time high of $68,997.75. Despite this decisive outcome, BTC started looking bullish on November 9. So, let's take a quick look at what the crypto pioneer technical looks like.

 

 

 

Bitcoin Price Hints at Short-Term Bullish Outlook But with Doubts

 

Bitcoin price revealed a bullish divergence on the three-day chart on November 09 and has been bullish in that timeframe ever since. After this setup was indicated by FXStreet, BTC rose 19% and reached a local peak of $18,400. Going forward, the price of Bitcoin has three prospects:

 

1. It formed a local top around $19,300 and corrected back lower to form a macro base.

2. Break through the $19,000 to $20,000 hurdle to reach the $25,000 and $28,000 hurdles.

3. Continued the ongoing decline and found a macro base between $11,898 and $9,453.

 

The State of Bitcoin Miners

 

Before we get too deep into the technicalities, let's take a quick look at the miners, who are essentially the backbone of the Bitcoin network. Due to the crypto winter, miners have undergone two large capitulations – the first of which was extended from June to August, and the second started at the end of November and is still ongoing. Judging from the capitalization of historical miners and the basis of Bitcoin's price, the basis of the current cycle should be imminent. The recent drop in adversity occurred at a time when Argo Blockchain, one of the biggest names in the Bitcoin mining industry, crashed. As a result, ARBK trading was suspended on the UK and US exchanges on December 9, which coincided with a big drop in the level of difficulty in mining bitcoin (mining difficulty). This plummet in mining difficulty has taken away the pressure from miners, but at the same time, it also marks the continuation of their wave of capitulation. So, a rapid downtrend is not beyond the possibilities for the price of Bitcoin.

 

The miner's reserve indicator gives a forecast of the amount of BTC held by these participants, and currently it is around 1.84 million BTC, worth about $30 billion. Therefore, the continuing difficulties faced by miners may result in more selling pressure, causing the price of Bitcoin to fall lower.