Bitcoin (BTC) continues to soar in 2023, with a price increase of over 70% so far this year. This surge in price has been fueled by a banking crisis and hopes for the approval of a spot Bitcoin exchange-traded fund (ETF) in the United States.
There are several factors that suggest Bitcoin’s price may continue to climb for the rest of 2023. One indicator is a potential fractal pattern, which shows similarities between Bitcoin’s current market trend and its price action from 2017 to 2020. According to popular BTC analyst Stockmoney Lizards, if a key breakout moment similar to the one in 2020 occurs, BTC’s price could climb to the $45,000-$50,000 range by the end of the year.
However, unlike Bitcoin’s 2020 rally, it currently faces challenges from the tightening policies of the United States Federal Reserve. The Fed’s actions have resulted in lower liquidity in the market, and Bitcoin’s price has already experienced a 40% decline since April 2022 when the Federal Reserve’s balance sheet reached its peak.
Despite these challenges, Standard Chartered predicts that Bitcoin will still reach $50,000 by the end of the year. Geoff Kendrick, the global head of research and chief strategist at Standard Chartered, argues that increased miners’ profitability will reduce their need to sell BTC, leading to lower supply against potential rising demand. The number of Bitcoin held by miners has already surged during the Ordinals hype in May 2023, stabilizing since then.
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From a technical perspective, one Bitcoin setup suggests a year-end target near $32,000. Bitcoin has entered the breakout stage of its bump-and-run reversal (BARR) Bottom pattern. This pattern typically resolves after the price breaks above its descending trendline resistance and rises by as much as the pattern’s maximum height. If the BARR Bottom pattern plays out accurately, Bitcoin’s price could increase by another 12.75% by the end of 2023.
It is important to note that this article does not provide investment advice or recommendations. Investing and trading in cryptocurrencies involve risks, and readers should conduct their own research before making any decisions.
In conclusion, Bitcoin’s price has shown significant growth in 2023. While there are challenges from the tightening policies of the Federal Reserve, analysts and technical patterns suggest that Bitcoin could continue to climb for the remainder of the year. With potential price targets ranging from $32,000 to $50,000, Bitcoin remains an intriguing asset in the cryptocurrency market.
