Bitcoin Price Holding Around $21,600: Will We Hold Jan 18 High This Weekend?

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

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

Here is a comprehensive study that will help you learn about all the possible Bitcoin price scenarios for 2023.

Will Bitcoin recover its previous levels in February 2023?

Despite initially crossing $23,000 on January 21, 2023, for the first point in the previous six months, Bitcoin cannot fly above those levels. As of this writing, more than $21.8 billion worth of Bitcoin is being traded daily. The Fed meeting, which is taking place in the United States despite falling inflation, is having an impact on the bitcoin price. Savvy Bitcoin investors, on the other hand, nervously anticipate further increases and expect the price to settle above $23,000.

It should be remembered that the price of Bitcoin started to rise upon crossing the critical threshold of $16,800. Once again gaining momentum, the price has been showing positive signs up to this point. Let’s see the current image showing the technical indicators:

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

The fact that 2024 is the year of the Bitcoin mid-event is one of the reasons why analysts are positive about the cryptocurrency. Every four years, there is a Bitcoin halving event in which the coin’s miner payouts are halved (miner payout will drop to 3,125 BTC). The fact that the supply halves is generally seen as helping the price of Bitcoin. In the past, the halving was thought to be a very positive indicator for increasing the price of Bitcoin.

Bitcoin Halving History

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

The US Federal Reserve’s most recent and less drastic rate hike of just 25 points, which allowed Bitcoin to maintain its bullish trend and outperform other asset classes, is the second factor supporting a price rise for Bitcoin in 2023.

The so-called “Bitcoin whales”, large investors who once held Bitcoin, have started to invest again. According to data from data aggregator Santiment, the largest Bitcoin whales hold balances of 1,000 to 10,000 BTC. The fact that traders have been hoarding BTC suggests that the bitcoin price may be rising.

Will Bitcoin’s downward trend stop in 2023?

Another group of major investors, corporations, and institutions have a different perspective on bitcoin and are convinced that it will likely decline soon. They saw this rise as a significant “bull trap” rather than a “bullish run”.

In a similar vein, Matthew Sigel, director of virtual currency research at VanEck, a global economic management firm, predicts that Bitcoin will drop below $12,000 levels due to rising energy prices.

Also, the multinational bank Standard Chartered made a Bitcoin prediction, which is somewhat surprising. According to his forecast, Bitcoin rates could drop to $5,000 by 2023.

According to experts, the tighter monetary policy and the increase in interest rates will prevent a quick recovery of Bitcoin any time soon. Investors will not choose to buy or invest in dangerous assets like Bitcoin due to the unpredictable nature of the market. Also, people who currently hold BTC can sell their holdings, putting additional pressure on the markets.

Which 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 rather than take any action that could result in significant losses. Even Indian crypto industry professionals agree that investors should maintain a wait-and-see attitude and that any further steps should be carefully considered.

“Bitcoin price action movement is driven by macroeconomic variables, including inflation fears and rate hikes, either by the US Federal Reserve or other central banks,” says Dileep Seinberg, director executive and founder of MuffinPay. Also, diminishing concerns about a slowdown or recession in the economy could affect the price of Bitcoin.

He strongly believes that Indian traders should be careful when considering a Bitcoin investment for 2023 as the year is expected to remain unpredictable and cryptocurrency investors should not go all out.

According to the creator of KoinX, Punit Agarwal, the main issues that cryptocurrency investors should be aware of are inflation and recession. This is true even in 2023. Agarwal said that when investing in digital currencies like Bitcoin, “Indian investors should take a long-term perspective.”

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

On the other hand, other industry experts have full confidence in Bitcoin and anticipate its resurgence. ZebPay’s Raj Karkara, the company’s COO, appears to be quite bullish on bitcoin. He said that regardless of the state of the market, “the basics of Bitcoin remain rock solid.” He went on to give analysis by market intelligence firm Glassnodes as an example, which revealed that long-term traders are still bullish on Bitcoin and that around 60% of the circulating supply is still unchanged in 2022.

If there are no macroeconomic impediments in 2023, Bitcoin may rise once more, according to Karkara. Furthermore, he believes that before making a buy or sell decision, cryptocurrency investors and traders should conduct a thorough study of the technical aspects and fundamentals of an asset. Investors can also hedge against market volatility by employing a SIP strategy while investing in Bitcoin.

Conclusion

There are many opinions and forecasts on Bitcoin, some of which are bullish and some of which are pessimistic. Where Bitcoin will go next can only be determined over time. Bitcoin has a significant capacity for comebacks and is known for being robust. Several seasoned analysts have been predicting that perhaps the Bitcoin bubble would burst in the next decade. But the cryptocurrency poster child remains a favorite among many people and has helped investors amass substantial wealth over time.

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