The year 2023 started well for the crypto market. After the big crash in 2022, the price trends for Bitcoin and many altcoins are currently looking promising. In the first 9 trading days of January, BTC/USD has posted 7 daily green candles so far and the price has risen from lows below $16,500 to around $17,250 at the time of publication.
But despite all justified hopes for better times for BTC buyers in 2023, this increase of about 4 percent should not be exaggerated. Although the price is currently recording higher lows and higher highs, it is still far too early to talk about a trend reversal or even declare a new bull market. Given the larger time frame, the bears’ dominance has changed little.
The price of Bitcoin is still 15 percent lower than before the FTX crash
The crash of the FTX crypto exchange is still affecting the market. For example, BTC/USD was trading above $20,000 before the crypto exchange crash in November 2022 and is currently almost 15 percent below that level. Huge resistance has been created in the $19,000 to $20,000 price range that Bitcoin has yet to even test. Unless BTC/USD manages to break this resistance and reestablish itself above $20,000, Bitcoin will likely have bottomed out in the bear market and see a longer rise in the “year and a half before Bitcoin” can be used.
However, this does not mean that it is not worth buying Bitcoin right now. Regardless of the further development of the course in the coming weeks, investors are currently getting Bitcoin 75 percent cheaper than at the highest prices in 2021. This currently appears to be an attractive time to enter, although it may prices continue to fall. Of course, this depends on the investment period. The longer the planned investment, the higher the chance that you will become profitable sooner or later.
However, if you are new to the market and want to buy cryptocurrencies, you should not enter the market too aggressively, because major corrections are still possible. Experienced investors recommend building a position slowly with a good average price with regular purchases using so-called dollar cost averaging.
Bitcoin course forms a double bottom: price target at $ 17,800
What can be expected from the price of Bitcoin in the short and medium term? Chart analysis is helpful for potential price targets. Looking at the small 1 hour candles, on December 30 BTC/USD entered a parallel ascending channel and steady price gains are seen here. Meanwhile, the price of Bitcoin has even managed to break through the upper resistance line and therefore accelerate the upward trend. This shows that the bulls can build some strength right now. However, it remains to be seen whether the course can position itself above the channel. A pullback, currently around $17,000, could lead to a retest of the formation’s support line.
However, the course can also be supported by a parabolic rising curve on which the Bitcoin course is currently moving upwards. Another move higher to at least $17,400 is possible here before resistance and support meet.
Bitcoin price is also looking bullish on the 4 hour chart. Thus, BTC/USD established a double bottom and already broke the resistance line of the formation at $17,050. A retest of this level as new support could continue the uptrend. The technical price target for this W formation is around $17,800.
This chart pattern could capture BTC to $28,000
The Bitcoin course also looks pleasant on the daily chart. Here, BTC managed to break out of a falling wedge to the upside and clear the $16,600 resistance zone. If BTC/USD continues to trend out of this bullish pattern according to technical chart analysis, it could capture Bitcoin to a technical price target of $28,000. That would be about a 70 percent increase from current levels and would bring BTC/USD back to its highest price since June 2022.
If the current trend continues, there is also a good chance that Bitcoin could see a bullish flip of EMA ribbons. Price moving averages are considered a key technical indicator for Bitcoin trend. As long as the red lines on the chart are up, momentum is considered bearish. On the other hand, if the yellow lines are above, as in the 2021 bull market for several months, this is a sign of an upward trend. This flip could be coming soon as the average lines are pushing very close to each other. If this attempt fails, however, there could be a major correction, as was the case at the beginning of November.
Overall, at the moment there are some signs in the Bitcoin chart that could speak for another upward trend, at least in the short term. But how will the price of Bitcoin develop in the medium and long term?
Will Bitcoin be the global currency in this decade?
According to Matt Smith from the University of Nebraska-Lincoln, Bitcoin could have a significant future. Because he writes in a guest article for Bitcoin Magazine that the digital currency could be crucial for the United States to consolidate its international power. The current decade could be characterized by the world saying goodbye to the US dollar and the rise of digital currencies.
Smith even believes that the special characteristics of Bitcoin as the “hardest currency in the world” make it unnecessary for the US to develop a national digital currency. Bitcoin could ensure prosperity for the United States and is almost the only option the country can use to get its trillion dollars in debt under control. Instead, ignoring the Bitcoin network would greatly hinder the ability of the US to service its national debt to outperform its geopolitical rivals.
On the other hand, Switzerland, which is considered an important crypto hub in the world, is much further along in the establishment of Bitcoin. Lugano’s efforts deserve special mention. There is a municipal initiative called “Plan ₿”. In a tweet, she recently announced a map to show residents and travelers where Bitcoin is already accepted. Hundreds of dealers are said to be involved in the project.
C + Charge: A new cryptographic project for e-mobility
An exciting new project in the crypto sector is called C+ Charge. By using blockchain technology and trading in emission credits, all participants should be able to make a significant contribution to environmental protection without buying an electric car. The purchase of CCHG, the native token, is now available in the Phase 1 Presale for $0.013 per token.
Cryptocurrencies with potential in 2023
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