Bitcoin (BTC) has been on a strong upward trajectory in 2023, with its price increasing by over 70% so far. This surge in price can be attributed to a banking crisis and the anticipation of a spot BTC exchange-traded fund (ETF) approval in the United States.
Many analysts are optimistic about Bitcoin’s price outlook for the rest of the year. One popular BTC analyst, Stockmoney Lizards, argues that the current market trend for Bitcoin is reminiscent of its price action from 2017 to 2020. According to Lizards, if history repeats itself, Bitcoin could experience a key breakout moment similar to the one in 2020 that led to a significant bull run. Based on this analysis, Lizards predicts that Bitcoin’s price could reach the $45,000-$50,000 range by the end of 2023.
However, there are some challenges that Bitcoin is currently facing. The tightening policies of the United States Federal Reserve have resulted in lower liquidity in the market, which has impacted Bitcoin’s price. Since the peak of the Federal Reserve’s balance sheet in April 2022, Bitcoin’s price has dropped by 40%.
Despite this, other experts, such as Geoff Kendrick, the global head of research and chief strategist at Standard Chartered, remain optimistic about Bitcoin’s price prospects. Kendrick predicts that Bitcoin will reach $50,000 by the end of the year. He argues that increased miners’ profitability will reduce their need to sell BTC, leading to a lower supply against potential rising demand.
The number of Bitcoin held by miners increased during the Ordinals hype in May 2023, but has since stabilized. This indicates that miners may be holding onto their Bitcoin in anticipation of higher prices.
From a technical analysis perspective, Bitcoin’s price pattern also suggests a positive outlook. The current setup indicates that Bitcoin is in the breakout stage of a bump-and-run reversal (BARR) Bottom pattern. This pattern typically resolves with a breakout above the descending trendline resistance, leading to a price increase. If this pattern plays out as intended, Bitcoin could reach a year-end target of around $32,000.
It is important to note that this article is not providing investment advice or recommendations. Investing in Bitcoin or any other cryptocurrency involves risk, and readers should conduct their own research before making any investment decisions.
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