2 - 4 minute read
According to popular market analyst Mags, Bitcoin (BTC) could rally toward $50,000 in 2023. The chart fractal highlights the similarities between Bitcoin’s ongoing price trends and those recorded after the completion of the 2013-2015 bear market. This includes the consolidation inside the $200-300 range between January 2015 and August 2015, which appears identical to its consolidation between the $18,500-25,000 range after the supposed completion of its 2021-2022 bear market.
BTC’s price broke above the $16,000-25,000 range in March 2023, prompting Mags to point out its resemblance to the breakout above the $200-300 range in October 2015. Since this resulted in a rally toward $700 in June 2016, the analyst sees the scenario potentially repeating in 2023, with the BTC price doubling to $50,000.
“Being bearish here [when Bitcoin’s price is around $28,000] is like being bearish at $350,” Mags added.
Lower rate expectations have caused the yield on the benchmark U.S. 10-year Treasury note to decline, boosting investors’ appetite for zero-yielding assets such as Bitcoin and gold. Lower yields have also sapped U.S. dollar demand, which means higher prices for BTC/USD since Bitcoin’s value is largely denominated in the dollar.
However, Bloomberg analyst Mike McGlone has cautioned about a potential bull trap in the Bitcoin market due to a mounting liquidity crunch. He said: “It may be illogical to expect the stock market, crude oil, copper, and the Bloomberg Galaxy Crypto Index to sustain the recent bounces with year-over-year measures of money supply and commercial bank deposits falling around 2%.”
Investors should conduct their own research before making any investment or trading move. While market analysts have highlighted the potential for Bitcoin to rally toward $50,000 in 2023, there are also potential risks to consider such as a liquidity crunch and changes in interest rate policy. As always, it’s important to stay informed and make thought-out investment decisions.