Algorithm Predicts Bitcoin Price for the End Of 2023 as BTC Dominance Creeps Higher

 Key takeaways

• Bitcoin (BTC) dominance has moved back above 50%, providing a key historical signal ahead of the next Bitcoin halving event in April 2024
• CoinCodex price prediction algorithm targets a +44% gain for BTC in the next 3 months
• BTC is seeking to recapture a key historical price level at $31,000 which could provide a springboard for higher prices over the coming months

Bitcoin dominance rises above 50% with 6 months remaining until the next halving event

Bitcoin (BTC) is the largest cryptocurrency by market capitalization, which typically has some important knock-on effects for the rest of the crypto markets. The current BTC market cap is $532 billion, while the total crypto market cap (TCAP) comes in at $1.042 trillion — in other words, the total value of BTC makes up 51% of the TCAP at this moment in time.

The dominance of BTC in the crypto markets has a strong influence on the price patterns for altcoins. BTC dominance has also been a reliable measure for the current stage of the crypto market cycle, which typically follows a 4-year pattern that uses the Bitcoin halving event as its catalyst.

Bitcoin rainbow chart, showing the Bitcoin halving as a key historical catalyst

The Bitcoin halving is where the total BTC mining rewards are cut in half every 210,000 blocks. This event is coded into the Bitcoin protocol, and it makes the current circulating supply for BTC become increasingly scarce over time.

The next Bitcoin halving event is expected to occur in April 2024. The bullish price action seen during 2023 is therefore thought to be a precursor for a full crypto market recovery, as the next BTC halving will provide fresh deflationary pressure for the largest crypto asset and cause the entire TCAP to rise.

The price of Bitcoin has climbed 64.93% YTD, which has caused Bitcoin dominance to rise from 38.9% to 51% in the same timeframe. With the next Bitcoin halving event on the horizon and Bitcoin dominance rising, market conditions are once again lining up towards sustained bullish price action for BTC and the TCAP during the Bitcoin halving year.

Bitcoin dominance chart, measuring the total share of the crypto market cap held by BTC, via CoinCodex

Algorithm predicts +44% move for BTC by Q1 2024

The CoinCodex price prediction algorithm has forecasted a 44% surge for BTC over the next three months as the market prepares for the Bitcoin halving event in April 2024. The algorithm’s price prediction would take the price of BTC from $27,273 up to $39,477 by Q1 2024, and back above a multi-year support/resistance level.

BTC price chart showing $31,000 as an area of interest, via TradingView

$31,000 has been a key area of interest across all stages of Bitcoin’s four-year market cycle. In 2021, this area was the first major trading zone for BTC after it had broken above its former all-time high. It then formed key support before BTC reclaimed its early-2021 ATH during a double-top market pattern that formed in late-2021.

In 2022, $31,000 turned into resistance after the LUNA crash took place in May. In 2023, $31,000 marked the top of the April and July price movements, and $31,780 is currently the yearly high.

The algorithm’s 3-month forecast involves an imminent reclaim of the $31,000 price level. This could mark a major turning point for BTC price action over the coming months, providing a multi-year flipping point that has typically preceded some explosive price movements.

3-month price prediction for BTC, via CoinCodex