The year 2022 has been challenging for all cryptocurrencies, including Bitcoin. In fact, the leading cryptocurrency, Bitcoin, has seen a significant decline in its market value, losing nearly 65% throughout the year. These developments, such as the Terra Luna crash and the fall of the major crypto exchange FTX, as well as the current macroeconomic conditions, have taken crypto enthusiasts by surprise.
Many are now wondering what the future holds for Bitcoin price forecasts. Will it recover or continue to decline?
The following article provides a thorough examination of the potential outcomes for Bitcoin price predictions in 2023.
Will Bitcoin Recover Again In 2023?
At the end of December, Bitcoin is trading confidently above $18,500 with a steady increase in value since November. The daily trading volume for Bitcoin currently stands at over $30 billion. According to experts, if Bitcoin surpasses the crucial level of $19,500, it may head towards the resistance level of $20,000, leading to further growth.
It's worth noting that once Bitcoin crossed the crucial level of $16,800, its price began to show positive signs and has maintained a bullish trajectory. Currently, technical indicators such as the Hourly Moving Average Convergence/Divergence (MACD) and the Hourly RSI for BTC/USD are pointing towards a bullish trend. Support levels for Bitcoin are at $18,000, and resistance levels are at $18,250 and $18,500.
One of the reasons for the bullish outlook on Bitcoin is the upcoming halving event in 2024. The Bitcoin halving event occurs every four years, during which the rewards for Bitcoin miners are reduced by half, from 6.25 BTC to 3.125 BTC. This event is usually seen as a positive development for Bitcoin's price, as it helps to reduce the supply. Historically, halvings have been associated with significant momentum for Bitcoin's value.
When we examine the data closely, we can see that past halving events for Bitcoin have set the foundation for long-term positive growth in its price. The halving event directly impacts its deflationary nature and reduces the overall supply, ultimately driving up the value of BTC. As a decentralized cryptocurrency, Bitcoin cannot be printed by governments or central banks, making the total supply limited.
Another factor that may contribute to Bitcoin's rally in 2023 is the Federal Reserve's interest rate decisions, which could potentially support Bitcoin's upward momentum and outperformance against other asset classes.
Furthermore, large investors known as "Bitcoin Whales" have begun accumulating BTC once again. Data from on-chain aggregator Santiment reveals that these big players are holding between 1,000-10,000 BTC in their wallets, indicating that they are stocking up on a significant amount of BTC, which could be a sign of recovery in the price of Bitcoin.
Will Bitcoin Crash Again In 2023?
While some investors, corporations, and institutions hold a bullish outlook on Bitcoin, others have a bearish perspective and believe that the cryptocurrency may decline in the near future. They view the current rally as a "bull trap" rather than a genuine "bull run." Billionaire investor Mark Mobius, the founder of Mobius Capital Partners, has already predicted a significant fall in 2022, stating that Bitcoin could drop as low as $10,000.
Another prominent investor, Matthew Sigel, head of digital assets research at VanEck, a global investment manager, predicts that Bitcoin will fall to $12,000 levels, citing high energy prices as a contributing factor.
Furthermore, a prominent analyst of Redot Exchange has made a surprising prediction for Bitcoin, forecasting that it could fall to $5,000 levels in 2023.
Experts argue that rising interest rates and tighter monetary policy will not allow Bitcoin to rebound sharply in the near future. In an uncertain market, investors are less likely to invest in risky assets like Bitcoin, and those who already hold BTC may sell their positions, putting additional pressure on the markets.