In the final weeks of 2022, most experts and analysts predicted that there would be little new development in the market during the first quarter of 2023. Investors were anticipating another period of decline.
However, as is typical of the cryptocurrency market, the opposite occurred. In January, most top cryptos experienced notable increases, with BTC breaking through the $22k resistance level again and generating approximately 36% profits.
There are different opinions on the strength of Bitcoin's price, with Bloomberg Intelligence cautioning that $25,000 could continue to serve as significant resistance. Just recently, it was aiming to close the week above $23,000, but concerns grew over the persistent resistance.
Can Bitcoin hit the $30k mark?
Throughout 2022, Bitcoin had a difficult time sustaining the $20,000 goal and experienced a decline of over 70% from its all-time high (ATH) value of $69,045 on November 10th, 2021.
In January, the leading cryptocurrency asset managed to finally exceed the $23,000 level, marking the first time in the previous five months, which triggered a bullish rally across the entire crypto market. Nevertheless, there are significant concerns with BTC that need to be resolved.
Bitcoin has yet to transform into the widely adopted global payment system everyone originally expected. In fact, it is being substantially outperformed by other cryptocurrencies such as Solana and Ethereum. This is primarily because it is still utilizing the Proof of Work (PoW) system that most other alt cryptos are moving away from and transitioning to the Proof of Stake (PoS) mechanism, which is quicker and more environmentally friendly.
What makes Bitcoin intriguing is that it holds the most influence in the market despite not always being the most sensible investment option. This is one of the primary reasons why Ethereum, often referred to as the “superior” crypto, has not yet overtaken Bitcoin. It has the potential to reach $30,000 in 2023 and is just one substantial bullish rally away from achieving this price. However, it must implement certain network modifications to maintain higher prices.
BTC price bulls have faith in hitting $30,000
Venture capitalists, who are already optimistic about the price of Bitcoin and other cryptocurrencies, already anticipate that the primary coin will reach $500k in 2024.
Mike Novogratz, CEO of Galaxy Digital Holdings, is one of those venture capitalists, and he believes that before the crypto reaches the highly desirable $500k level, it must first surpass or reclaim the $30,000 threshold by the end of March 2024.
Earlier this year, it rose to its highest point since August, increasing for the second day in a row, as a decline in risk aversion eased concerns about a growing regulatory crackdown by U.S. officials.
Furthermore, according to data provided by TradingView and Cointelegraph Markets Pro, BTC/USD climbed to $23,318 on that particular day, indicating an increase of $600 from its lows over the weekend. This recent development is a small rebound after a difficult week for risky investments, during which U.S. equities took a hit due to higher-than-anticipated inflation figures. However, Bitcoin was still trading below levels that analysts had identified as crucial to recover before the end of the month. There were only a few individuals who remained positive about Bitcoin, one of them being Kaleo, a popular trader who believed that the $30k is a price “magnet” and still remained as a significant price level for BTC.
Meanwhile, Altcoin Sherpa, a cryptocurrency trader, provided a timeframe of "4-6 weeks" for Bitcoin to reach the $30k level. Mags, a fellow trader and analyst, summarized that BTC is currently going through a transition period between a bearish and bullish market, and its upward trend will only start when the neckline is broken.
Bloomberg analyst’s verdict on Bitcoin: “Trend remains downward”
Looking into the future, Mike McGlone, one of Bloomberg Intelligence's senior macro strategists, expressed concerns about the ability of the bulls to surpass the $25k resistance area. In a Twitter summary of recent research, it was stated that the dominant headwind for markets in 2022 was "Don't fight the Fed," and this continues to be the case in the first quarter of 2023. Despite market rebounds, strong headwinds remain.
The $25,000 resistance level for Bitcoin could have significant implications for all types of risky assets. According to the research, those who are more tactically oriented are likely to engage in responsive selling when it comes to BTC/USD, while it may take a while before buy-and-hold types gain an advantage.
During the previous week, there was optimism that BTC/USD would be able to overcome the $25,000 resistance level without encountering significant difficulties. However, it became clear that the task was more challenging than expected as significant obstacles emerged, including high sell orders on exchange order books and the presence of key moving averages such as Bitcoin's 50-week and 200-week trend lines. McGlone concluded that the trend was still declining, which was influenced by the decreasing 50-week moving average (MA).
Is it A Hit Or Miss?
Bitcoin has been performing well in recent weeks, and this has restored the confidence of many investors in the cryptocurrency market. The leading altcoins have followed in their footsteps and also recorded some solid returns, which is a trend that will likely continue for a while. Assuming that global inflation stabilizes in the coming months and there are no major unforeseen events (such as FTX and Terra Luna incidents), it is possible for BTC to reach a value of 30k or even higher.
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