Bitcoin Price Holds Around $21,600 – Will We Hold At 18 January High This Weekend?

All cryptocurrencies, including Bitcoin, have had a very difficult year in 2022. In fact, throughout 2022, Bitcoin, the biggest cryptocurrency in the world, lost up to 65% of its market value. A slew of bad occurrences, including the Terra Luna crisis and the collapse of the biggest crypto exchange FTX, as well as the impending macroeconomic circumstances, took crypto enthusiasts by surprise.

Just what would happen next is one of the many queries on everyone’s mind, though. Will Bitcoin ever recoup its losses? Or will it implode like in 2022?

Here is a thorough study that will assist you in learning about all the potential Bitcoin price scenarios for 2023.

Will Bitcoin Regain Its Former Levels in February 2023?

Despite having initially crossed $23,000 on January 21, 2023, as the first point in the previous six months, Bitcoin is unable to fly over those levels. As of this writing, more than $21.8 billion is traded daily in Bitcoin. The Fed meeting, which is taking place in the United States despite declining inflation, is having an impact on the price of bitcoin. Proficient Bitcoin investors, on the other hand, are nervously anticipating further increases and hoping that the price will settle above $23,000.

It should be remembered that the price of Bitcoin began to rise as it crossed the critical threshold of $16,800. Once again gaining momentum, the price has been displaying positive signs up to this point. Let’s look at the current picture that the technical indicators are showing:

• The bullish zone is expanding on the hourly MACD indicator.
• The Relative Strength Index for Bitcoin/USD at the hourly interval is higher than 85.
• $22,700 in support levels.
• Levels of Resistance: $22,900.

The fact that 2024 will be the year of Bitcoin’s half-event is among the reasons why analysts are positive about the cryptocurrency. Every four years, there is a Bitcoin halving event in which the currency’s miner payouts are cut in half (the miner payment will be decreased to 3.125 BTC). The fact that the supply is reduced by halving is generally viewed as helping the price of Bitcoin. In the past, halving was thought to be a highly positive indicator for increasing Bitcoin’s price.

Bitcoin History of Halving

Therefore, if we carefully examine the statistics, previous Bitcoin halving occurrences have been successful in establishing long-term positive drivers for Bitcoin’s price. The halving of Bitcoin’s supply, which raises the price of BTC, is closely related to Bitcoin’s tendency toward deflation. The entire quantity of Bitcoin is capped since it is a decentralized cryptocurrency and cannot be issued by governments or other central banks.

The U.S. Fed’s most recent, less drastic rate increase of only 25 points, which enabled Bitcoin to retain its upward trend and beat other asset classes, is the second factor supporting a price increase for Bitcoin in 2023.

The so-called “Bitcoin Whales”—large investors who once held Bitcoin—have started investing again. According to data from data aggregator Santiment, the biggest Bitcoin whales maintain balances of 1,000 to 10,000 BTC. The fact that traders have been stockpiling BTC suggests that the price of bitcoin may be on the rise.

Will Bitcoin’s Downward Trend Stop in 2023?

Another group of investors, corporations, and major institutions have a different perspective on bitcoin and are adamant that it will likely decline shortly. They viewed this surge as a significant “bull trap” as opposed to a “bull run.”

In a similar vein, Matthew Sigel, director of virtual currency analysis at VanEck, a world’s economic management firm, predicts that Bitcoin will fall below $12,000 levels due to rising energy prices.

Furthermore, multinational bank Standard Chartered made a Bitcoin prediction, which is somewhat surprising. According to their forecast, Bitcoin rates might drop to $5,000 in 2023.

According to experts, the stricter monetary policy and rising interest rates will prevent a swift recovery for Bitcoin shortly. Investors will not choose to acquire or invest in hazardous assets like Bitcoin because of the unpredictable nature of the market. Additionally, people who are currently holding BTC may sell their holdings, putting additional pressure on the markets.

What Bitcoin Strategy Should Indian Investors Use in 2023?

What should Indian cryptocurrency investors do given the wide range of Bitcoin predictions? Given the current state of unpredictability, it may be prudent to closely monitor Bitcoin price movements instead of taking any action that may result in significant losses. Even Indian crypto industry professionals agree that investors should maintain a wait-and-watch attitude and that any subsequent steps must be carefully considered.

“Bitcoin’s price action movement relies upon macroeconomic variables including inflationary fears and rate rises either by the U.S. Federal Reserve as well as other central banks,” says Dileep Seinberg, CEO and founder of MuffinPay. In addition, declining concerns about a slowdown or recession in the economy might affect the price of Bitcoin.

He fervently believes that Indian traders should exercise caution while considering a 2023 Bitcoin investment since the year is expected to remain unpredictable and cryptocurrency investors shouldn’t go all out.

According to KoinX creator Punit Agarwal, the major themes that cryptocurrency investors should be on the lookout for are inflation and recession. This is true even in 2023. Agarwal said that while investing in digital currencies such as Bitcoin, “Indian investors ought to take a long-term perspective.”

He thinks that to achieve long-term benefits, investors should use frequent SIPs in bitcoin.

On the other hand, other industry insiders have complete trust in Bitcoin and anticipate its resurgence. ZebPay’s Raj Karkara, the company’s COO, appears to be quite optimistic about bitcoin. He said that regardless of the state of the market, “the basics of Bitcoin stay rock strong.” He went on to give the analysis of market intelligence company Glassnodes as an example, which revealed that long-term traders are still optimistic about Bitcoin and that about 60% of the circulating supply has not yet changed in 2022.

If there aren’t any macroeconomic impediments in 2023, Bitcoin can climb once more, according to Karkara. Additionally, he believes that before making a purchase or sale decision, cryptocurrency investors and traders should conduct a comprehensive study of the technical aspects and fundamentals of an asset. Investors can also protect themselves against market volatility by employing a SIP strategy while investing in Bitcoin.

Conclusion

There are many opinions and forecasts about Bitcoin, some of which are bullish as well as some of which are gloomy. Where Bitcoin will go next can only be determined with time. Bitcoin has a significant capability for comebacks and is renowned for being robust. Several seasoned analysts have been predicting that perhaps the Bitcoin bubble would pop within the next decade. But the cryptocurrency’s poster child is still a favourite among many people and has helped investors amass substantial riches over time.

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