As 2023 draws to a close, Bitcoin (BTC) is showing positive indicators on its charts and trying to suppress the significant price threshold of $45,000. This has cryptocurrency traders and investors thinking about what potential price ranges they could reach in the coming year.
Despite being below its yearly high of $44,000 and still far from its all-time high of $67,000, the flagship crypto is showing signs of recovery.
Dominance until the halving?
Suppose the historical indicators could tell us something. In this case, cycles occur in the market and it is important to recognize them in order to decide whether to buy, sell or hold depending on the situation.
It appears that a historic repeat is underway, with the possibility of peaking Bitcoin dominance before the upcoming BTC halving, as crypto analyst Michaël van de Poppe said in his December 27th X post emphasized.
“History is likely to repeat itself and we will peak with Bitcoin dominance before the Bitcoin halving. This means the bull market in altcoins has begun and Ethereum will take the lead from here.”
Historical Bitcoin pattern chart. Source: Michael van de Poppe
Parallel channel determines Bitcoin price
In the context of the 4-hour chart, Bitcoin is currently in a consolidation phase within a parallel channel, highlighting the crucial support level at $42,400.
Should Bitcoin experience a sustained decline below this level, there is a possibility of a subsequent move towards $40,700. Conversely, a rebound from current support levels could pave the way for bullish momentum and a potential rise to $44,400, said a Dec. 26 post by crypto expert Ali Martinez.
Bitcoin 4-hour parallel channel chart. Source: Ali Martinez
MicroStrategy is driving up the BTC price
MicroStrategy’s recent $615 million purchase of Bitcoin has caused great optimism and excitement in the trading community.
With a current holding of more than $8 billion in the leading cryptocurrency, the company's recent purchases and positive developments have contributed to an upward trend in the market, cryptocurrency analytics platform Santiment said in a Dec. 28 post.
How MicroStrategy's Bitcoin purchases dictated the BTC price. Source: Santiment
At the same time, artificial intelligence (AI) algorithms deployed by cryptocurrency analytics and monitoring platform CoinCodex suggest potentially continued growth for Bitcoin in the coming months. Forecasts place the price at $44,728 on January 1, 2024, with expectations to rise towards $82,469 by December 30, 2024.
1 year price prediction for Bitcoin. Source: CoinCodex
Bitcoin price analysis
At press time, BTC is trading at $42,952, up 0.72% on the daily chart. Furthermore, it recorded a -1.73% decline over the last week and recorded a 16.24% increase over the past month, contributing to a total upside of 158.05% over the past year.
Bitcoin YTD price chart. Source: Finbold
The importance of institutional players to Bitcoin price is highlighted by MicroStrategy's involvement, as evidenced by the historical movements of BTC price after the news of the acquisition was announced to the public.
This may be a sign of things to come; With the possible approval of spot Bitcoin ETFs on January 10, financial institutions could push the price of this asset to unprecedented highs.
However, everything remains to be seen because currently speculation is the main driver of BTC price and when it dies down, the price also drops.
Disclaimer: The content of this website should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.
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