The price of Bitcoin dropped significantly in 2022 before the abrupt collapse of FTX last month. This was due to rising interest rates, increased association with overvalued tech stocks, and instability in other parts of the cryptocurrency ecosystem.
Currently, the price of Bitcoin is around $16,604, with a market capitalization of $319,554,631,816.13. This year, Bitcoin has experienced a change of -64.09%.
As the year comes to a close, many are looking forward to what BTC will be like in 2023.
How Are The Whales Influencing The BTC Price?
According to data from Santiment, the number of Bitcoin (BTC) whale transactions that cost more than $1 million has reached its lowest level since December 2020.
There is a direct correlation between the price of BTC and whale transactions that total more than $1 million. This is because the price of BTC may potentially decrease persistently due to whales’ unwillingness to accumulate or distribute.
BTC Investors Are Shedding Their Holdings
Despite suffering losses and a decline in whale activity on the BTC network, short-term holders continue to sell, according to CryptoQuant analyst Phi Deltalytics.
Phi claims that an assessment of BTC’s Short-Term Output Profit Ratio revealed that these participants, even if it meant suffering losses, had chosen liquidity over holding onto their assets.
The BTC On-balance volume (OBV) was at -2.127 million on a daily chart, indicating that more assets are being sold than purchased, which drives down prices.
This position is supported by the fact that both BTC’s Money Flow Index (MFI) and Relative Strength Index (RSI) are currently below their neutral zones. The RSI is at 43.75 and the MFI is at 40.17, both in downtrends. A continuous dip in an asset’s RSI and MFI indicates a significant drop in buying momentum and may suggest that the asset is oversold. A shift in investor conviction is needed for a reversal to occur.
Bitcoin Price 2023
Bitcoin has considerably decreased since the start of the year. Let’s look at some expert predictions. Bitcoin might reach a high of $17,431.30 in 2022 before falling to $17,274.38 in 2023, according to CryptoPredictions.com.
PricePrediction predicts that the price of bitcoin in 2030 will be $394,710.77, up from a modest $18,029.65 in 2022.
By December 12, 2023, Wallet Investor projected a $10,111.96 price loss in bitcoin, which is fairly bearish.
Source: https://coinpedia.org/bitcoin/bitcoin-might-enter-2023-on-bearish-note-btc-price-heading-to-this-level-in-january/