The start of a new year launched Bitcoin price and crypto market forecasts across social media and mainstream media platforms. Pundits debate whether bulls or bears will drive price action in 2023. Last year, the bears took over, sending the benchmark crypto back to 2020 levels.
As of this writing, bitcoin price is trading at $16,700 registering a small gain during today’s trading session. On higher timeframes, the cryptocurrency continues to see sideways price movements. The latter could act as the dominant price action for 2023.
BTC price is moving sideways on the daily chart. Source: BTCUSDT trade view
The best is yet to come for bitcoin price
According to a report by CNBC, the Bitcoin price will change extremely in its trajectory. Optimistic experts like BTC bull Tim Draper believe the cryptocurrency will trend higher from its current levels.
Draper believes the benchmark crypto will rally 1,400%, reclaiming previously lost territory and breaking above $250,000 by mid-2023. BTC bulls believe macroeconomic conditions will drive acceptance much higher.
One demographic will lead this potential new wave of adoption that will coincide with the upcoming bitcoin halving. This event is scheduled for 2024, but historically the market has priced in its impact much earlier. Drapier said:
My assumption is that the dam will burst as women control 80% of retail spending and only 1 in 7 bitcoin wallets are currently owned by women.
Carol Alexander, Professor of Finance at Sussex University, believes Bitcoin could see two short-term rallies. The first could bring the Bitcoin price back to $30,000 and the second to $50,000 due to lower trading volume and prominent players.
As FTX and Three Arrows Capital collapse, Alexander expects less competition in the market, which could give room for other prominent players to push BTC higher. The professor explained:
In 2023 there will be a managed bull market, not a bubble – so we won’t see the price overshoot like before. We’ll see a month or two of stable price trends interspersed with range-limited periods and likely a few short-lived dips.
Exploring less favorable scenarios, how low can BTC go?
Better macro landscape, adoption, halving and supply shortages, and less competition. These are the factors that could work in favor of cryptocurrency.
On the other hand, Standard Charted’s Eric Robertsen claims that bitcoin price could return to 2020 levels and reach $5,000. A lack of investor confidence and further capitulation by crypto companies could trigger this scenario.
The low liquidity in the sector makes matters worse. Current market conditions could see further downside if the US Federal Reserve (Fed) doubles its tightening monetary policy.
According to Mark Mobius, who successfully predicted BTC’s crash from $30,000 to $20,000 in 2022, the cryptocurrency could fall to around $10,000 if the Fed tightens further. Mobius said:
With higher interest rates, holding or buying bitcoin or other cryptocurrencies becomes less attractive because simply holding the coin pays no interest.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.