Bitcoin has surged by over 70% in 2023, propelled by a banking crisis and optimism surrounding the potential approval of a spot BTC exchange-traded fund (ETF) in the United States.
The big question now is, will Bitcoin’s upward trajectory continue throughout the remainder of 2023? Let’s delve into the possibilities and potential price targets for BTC.
Historical Fractal Points to $50K: Bitcoin’s current market trend closely resembles its price action from 2017 to 2020. Drawing parallels with a breakout moment in 2020 that led to a significant bull run, popular BTC analyst Stockmoney Lizards suggests a potential climb to the $45,000-$50,000 range by the end of the year if a similar breakout occurs.
However, the current scenario differs from the 2020 rally as Bitcoin faces challenges from the tightening policies of the United States Federal Reserve, resulting in reduced market liquidity. Bitcoin’s price has experienced a 40% decline since April 2022, coinciding with the peak of the Federal Reserve’s balance sheet.
Standard Chartered’s Prediction: Standard Chartered’s global head of research and chief strategist, Geoff Kendrick, predicts a year-end target of $50,000. Kendrick argues that increased profitability for miners will lead to a reduced need to sell BTC, thereby lowering the overall supply against potentially rising demand.
The surge in Bitcoin holdings by miners during the Ordinals hype in May 2023, stabilizing since, adds an interesting dimension to this prediction.
Technical Setup Points to $32,000: Another technical analysis of Bitcoin suggests a year-end target near $32,000, reflecting a recent price peak. Bitcoin has entered the breakout stage of its prevailing bump-and-run reversal (BARR) Bottom pattern. Typically, this pattern resolves after the price breaks above its descending trendline resistance, rising by as much as the pattern’s maximum height.
Notably, a similar BARR Bottom pattern accurately played out in Dogecoin’s case in June 2022, leading to a price increase. If Bitcoin follows suit, it could see another 12.75% increase by the end of 2023.
As Bitcoin continues to be influenced by historical patterns, technical indicators, and macroeconomic factors, its journey in the coming months remains an intriguing aspect of the cryptocurrency market