Bitcoin Price Holds Above $23,000: Will February Bring a New Rise?

A recent Pureprofile survey has shown the expectations of large institutional investors regarding the future price of Bitcoin. The survey, which interviewed 200 institutional investors and wealth managers in multiple countries, including the US, UK and Brazil, and collectively managed $2.85 trillion in assets, found that nearly 9 in 10 investors predict an increase in the price of Bitcoin this year.

Among them, 23% predicted that Bitcoin will exceed $30,000 by the end of 2023, and 65% agreed that it could reach $100,000 in the long term. 58% expect it to reach that price in 3-5 years, while 39% predict it will reach its November 2021 high of $69,000 within 3 years. Only 3% questioned whether Bitcoin will ever hit its previous all-time high again.

While these numbers may give an idea of ​​how institutional investors are looking towards Bitcoin, the retail market is demanding more realistic targets for the digital asset.

Inflation to Influence Bitcoin Price Targets

The price of Bitcoin (BTC) has risen in the first weeks of the year despite warnings from central bankers. Inflation remains a big concern for 2023 as central bankers predict it may not slow as expected. The markets have been quick to price in the current dips, but that may not be the case.

The upward trend of layoffs and closures in car production lines due to chip shortages will drive up second-hand car prices and cause inflation to rise. This, combined with the appearance of central banks in February, may cause a decline in the price of Bitcoin to $16,020. Traders can exit their long positions as reaching the next profit level of $28,695 will be unlikely under these conditions, if the predictions turn out as stated.

The chip shortage is just one aspect of the economy, as commodity prices and US rates and the dollar have also weakened. If the Fed confirms rate cuts for 2023, this could lead to a steady rally and push the price of Bitcoin to as high as $28,695 in a two-month high.

Bitcoin Technical Analysis

Bitcoin saw a surge in its price on January 29, briefly reaching $24,498, but the move was short-lived and the price dipped back down to just under $23,250. This was the third time the pair had attempted to reach a sell-side liquidity of $23,400 in recent days, but the bulls lacked the momentum to recapture the new support levels.

Resistance is currently stacked at $23,200, $24,500, and $25,000, with $25,000 being the target for some traders. Some traders expect the overall crypto market cap to retest resistance above the $1 trillion mark, but remain cautious on longer time frames as they keep the door open for a new macro low to appear in Bitcoin and altcoins in 2023.

For those wondering: I’m totally fine. Just tuning out all the negativity on Twitter and focusing on the graphics/enjoying life. There’s no point tweeting when there’s no change.

And yes, still short and strong. Interesting week ahead.

— the Crypto Capo (@CryptoCapo_) January 29, 2023

Il Capo of Crypto (a cryptocurrency commentator), remains “short and strong” on Bitcoin and predicts a downtrend. Bitcoin held near $23,000 on Saturday but was unable to break out of the key $23,500 resistance level, prompting a resurgence of bearish sentiment.

The 14-day RSI has dipped below 80 and is likely to hit a bottom at 76, which could cause Bitcoin to collide with a bottom at $22,400 if the downward momentum continues. Currently, the RSI is tracking at 55, with Bitcoin trading at $23,220.25.

Where does Bitcoin go from here?

The arguments about the “value” of Bitcoin are constant forever, however, if we accept that blockchains have a future, then a crucial question to consider is when will Bitcoin reach the accumulation phase that signals the end of a bearish phase in any market.

This accumulation phase is known as Wyckoff accumulation, where the asset’s price repeatedly tests the upper and lower limits of its value. The upper bound is where traders previously sold enough of the asset to prevent its price from moving higher, and the lower bound is where traders bought enough to prevent the price from falling further.

The value of Bitcoin (BTC) has risen above $23,000 ahead of the Federal Open Market Committee’s interest rate decision. The Personal Consumption Expenditures (PCE) report showed slower inflation, leading to a rise in cryptocurrencies. The market forecasts a 25 basis point increase in interest rates at the February meeting. However, the aggressive stance of the Fed may cause a drop in the price of Bitcoin.

Institutional investors will only start aggressively buying the asset again when they believe the lower bound has proven to be resistant enough, meaning they see the price as cheap. This will only happen after a capitulation period. However, this time around, retail investors may have outsmarted the big institutions and the price will only go up from here.

On the other hand, given the current economic outlook, with the possibility of a recession, job layoffs, and weak US retail data, it is more likely that we will see further price declines in the crypto market, including bitcoin.

In conclusion, while the future of cryptocurrencies remains uncertain, if we accept that blockchain has a future, we must consider the timing of the accumulation phase and prepare for future price declines in the cryptocurrency market, including Bitcoin. The only way to know for sure what will happen is to wait and see how events unfold.

Investors flock to high-yield altcoins

While the outlook for bitcoin may seem uncertain for now, there are many other coins that hold great promise for the future. Here are a few that we consider to be the best.

Meta Masters Guild, a play-to-win gaming platform, has raised over $1.92 million so far and is currently in stage 4 of its pre-sale. The project aims to reach a total of $4.97 million and has a symbolic price that increases at each stage. The platform is focused on developing mobile games for casual gamers and is moving forward with its first game, Meta Kart Racers. Analysts predict that the platform will become one of the fastest growing gambling-earning cryptocurrencies this year with the potential for high returns. The fifth stage of the seven-stage pre-sale is expected to reach $2.632 million, resulting in an approximate 19% increase in the token price.

Next on the list is FightOut, a fitness app and gym chain that combines real-life workouts with virtual competition in the metaverse. The company aims to disrupt the $96 billion fitness industry by providing rewards for all forms of exercise, including weight lifting, boxing, and Zumba. The app has a monthly subscription fee, with rewards paid in REPS, and there will be a metaverse accessible through the app. FightOut has a token, FGHT, which is now available for purchase at $0.01801 and will increase in price shortly. FGHT pre-sale ends on March 31, followed by CEX listing on April 5.

To wrap it all up, Calvaria: Duels of Eternity is a crypto game where players collect NFT battle cards to fight one-on-one against other players. The game offers enhanced gameplay with 3D graphics and is available on iOS and Android devices. Players who win battles earn RIA tokens that can be used on the market to trade powerful cards. The game is set in the afterlife, is based on Polygon, and plans to release new assets and game modes to keep players engaged, as well as host esports tournaments. The project aims to attract traditional and casual gamers to the blockchain by offering a free version of the game. The RIA token has completed its pre-sale, raising over $3 million and these tokens will be available to claim during the listing.

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