2022 has been a difficult year for all cryptocurrencies, including Bitcoin. In reality, Bitcoin, the world’s largest cryptocurrency, has lost approximately 65% of its market value in 2022. A succession of tragic occurrences, such as the Terra Luna crisis, the collapse of the major crypto exchange FTX, and the approaching macroeconomic difficulties, caught crypto enthusiasts off surprise. But there are still unanswered issues on everyone’s mind: what will happen next? Will Bitcoin ever recover? Or will it crash again, as it did in 2022? Here’s a lengthy read that will help you figure out all of the Bitcoin price possibilities in 2023.
WILL IT RISE IN FEB 2023?
Bitcoin is currently trading at $22,700, with a positive price movement from last November. On January 21, 2023, it surpassed the critical level of $23,000 for the first time in the previous five months. At the time of writing, Bitcoin’s daily trading volume exceeded $24 billion. Experts are watching the forthcoming Fed meeting in the United States, which might be a make or break situation for Bitcoin, which is poised to make more increases.
It should be remembered that the Bitcoin price began to exhibit good signs after crossing critical levels of $16,800. The price has resumed its upward trend and has been displaying optimistic indications until now. Let’s have a look at what the technical indicators are showing right now:
Hourly Moving Average Convergence/Divergence (MACD) – Increasingly bullish.
BTC/USD hourly RSI (Relative Strength Index) is above the 85 mark.
Levels of Support – $22,700
$22,900 for Resistance Levels.
BITCOIN HASHRATE:
The hash rate is simply the amount of processing and computing power needed to validate a transaction on a proof-of-work network. It entails solving a complex mathematical equation as soon as possible, which is determined on a per second basis. The hash rate has recently recovered dramatically, hovering around 282 million and headed north. The increasing hash rate implies that there are more nodes or computers on the network, which means that the network is more secure and less vulnerable to attack.
The mining difficulty or average difficulty of Bitcoin refers to how tough it is for miners to create a hash rate lower than the intended rate. This is accomplished by lowering the hash block header’s numeric value. Every 10 minutes, a new block of Bitcoin is created and added to the network. The average difficulty is currently at its peak, suggesting that there are more miners on the network. Furthermore, the difficulty is changed based on the number of network participants and their aggregate hash power.
TECHNICAL ANALYSIS:
The bears have reclaimed control, and the BTC price has fallen below the rising triangle’s support levels. The price has also fallen below the critical 100-day EMA levels, indicating a bearish trend for the cryptocurrency.
Furthermore, the On-balance volume (OBV) shows a bearish divergence, indicating that trade activity has declined dramatically. Although the BTC price is duplicating the previous pattern, the trend does not appear to be increasing, implying that a negative pullback is possible. In the event of prolonged bearish action, the price may go back to test the lower support at roughly $21,500 in the short term.
PRICE PREDICTION FOR 2023:
Following a bull-run in 2021, Bitcoin remained under severe negative pressure throughout 2022. Meanwhile, the beginning of 2023 represented a major recovery phase, with Bitcoin values increasing by roughly 40%. Regardless of the present downturn, it is expected that the price will maintain its bullish momentum and resume its upward trend before the end of January. Furthermore, towards the conclusion of the first quarter, the price may seek to settle above $25,000.
However, the price may remain consolidated during Q2 trade as the bearish influence does not appear to have abated. As a result, by the end of H1 2023, the BTC price might be close to $28,100, or if bearish activities continue, it could be below these levels. Furthermore, by the end of Q3, the price might be back above $28,000 if the bulls maintain their surge or if they exhibit a lengthy consolidation. By the end of 2023, the price of Bitcoin may surge slightly beyond $30,000 before settling around $32,000.
PRICE PREDICTION FOR 2024:
With a bullish finish in 2023, same momentum may be carried forward in 2024 as the price attempts to break through $35,000 in Q1. After a brief period of consolidation, the price might rise above $37,500 or close to $40,000 by the end of H1 2024. Regrettably, the BTC price may be rejected from $40,000 and fall below $38,000 only before the conclusion of Q2.
BOTTOM LINE:
Since its inception in the crypto world, Bitcoin has been regarded as the most profitable investment. Because the token has been there for more than a decade, market players may rely on it. Before investing in the token, however, thorough study on the project and planned updates is required. A detailed examination of price changes is also necessary.