Bitcoin, the world’s largest cryptocurrency, experienced a major crash in 2022 and was dragged down by a series of unfortunate events. 2023 came with a hope for a bullish rally as it picked up its pace surpassing the $20,000 resistance level for the first time since November. Thanks to the rapidly unfolding U.S. banking crisis and the federal government’s effort to limit the fallout, the premier crypto has been on a wide rally over the past few months.
So let’s analyze the latest Bitcoin trends and price forecast, including macroeconomic risks, on-chain metrics, and price catalysts, to see how it is slowly outperforming altcoins in 2023.
BTC Price Analysis
The flagship cryptocurrency, Bitcoin, has shown signs of recovery in 2023, regaining investor confidence. It had dropped below $17,000 after the FTX collapse till the middle of January 2023. The crypto experienced a dramatic price rise and now sits at $25,813.20 as of writing. The price elevation and overcoming certain price hurdles could be a result of investors turning to the crypto as a safer alternative to the turmoil in traditional banking systems at the moment.
Data from the Trading view shows that Bitcoin dominance, or the percentage of the crypto market’s total capitalization taken by Bitcoin, has hit the highest level in over nine months. It is above 45.5% on Wednesday, which comes after the BTC/ETH exchange rate hit its highest level since November.
BTC/BNB is also near its highest since last August, at around 80, and BTC/XRP is at its highest level since last September, above 62,200. On the other hand, BTC/ADA is at its lowest level since early 2021.
Because of this, Blockchaincenter.net’s Altcoin Season Index has now dropped strongly into its “Bitcoin Season,” significantly down from late February highs in the 47 areas.
Can Bitcoin Hit $30,000?
Traders, investors, and crypto enthusiasts are excited to see a ray of hope for BTC. Even though the all-time high of $68,000 is a far cry, analysts believe that BTC can hit a new level of $30,000 in 2023.
As per experts, there are numerous factors behind Bitcoin’s rally in 2023, like the increasing interest rates in traditional finance, the scheduled BTC halvening event, and so on. The crypto became the center of focus again after it started hovering around $26,000 earlier this week, which was a stunning recovery since its long-time resistance level of $20k.
A technical analysis of Bitcoin would give more information on whether BTC is capable of hitting new highs of $30,000 this year. It dramatically rebounded from its recent retest of the 200 DMA and Realized Price, which is under $20,000, a strong sign of a robust upcoming bull market. Furthermore, the recent breakout above the $25,200 - 400 area resistance is paving the way to the next higher resistance level of $28,000.
The on-chain indicators are showing positive signals for Bitcoin. Several key metrics, like daily transactions, new address creation, daily active users, and number of addresses with a non-zero balance, have continued to trend positively.
However, it is crucial to closely watch the health of the US and global financial system in the coming months as it will play a significant role in Bitcoin’s rally. The Fed’s meeting scheduled for next week is a key event to monitor as that could be another tailwind for Bitcoin.
Analysis shows that if BTC can make it to and break above the $28,000 resistance, it would open a big door to more highs beyond $30,000, making the next resistance between the $32,500-$33,000 area.
Key Catalysts For BTC Price Rise
It seems that the crypto market is slowly rising from all the uncertainties and climb-downs, and BTC price is all set to lead the new bull run of 2023. Investors still have complete faith in Bitcoin, regardless of any price slumps, because of its strong potential to generate good returns over the long run.
As per analysts, there are several reasons for the Bitcoin price recovery this week. These include a fierce response from US authorities to backstop deposits, the launch of a new bank liquidity program that helped USDC to recover back to its $1peg, and expectations that the Fed would retain itself from a further rate hike.
Also, Bitcoin's rising prominence as a safe haven against trouble in the traditional financial system is proving to be more helpful now. Another catalyst that could drive BTC to new highs is the expectation of the so-called "halving event" in 2024. The reduction in supply would create a significant increase in demand, pushing the price of BTC to new record highs. In addition to all this, BTC whales have again started accumulating the crypto and hold over 1,000-10,000 BTC in their wallets.
The Bottomline
Considering everything, the current price of BTC and its bullish rally is like a breath of fresh air for investors after the prolonged crypto winter. Although investors are quite optimistic about the rising prices, the volatility of the crypto sphere cannot be ignored, since it is an unprecedented territory considering the geopolitical climate, rampant inflation, and the Fed’s stance on interest rates. However, there are numerous reasons to be bullish about the world’s first cryptocurrency, especially now, as BTC significantly outperforms altcoins and poses an ideal time to buy the crypto now for long-term returns.
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