This new year has seen a renaissance in the price of bitcoin (BTC). The mother cryptocurrency accumulated an 11% increase in the last seven days and is trading at $21,054, after a 1% rise in 24 hours by the time of writing.
BTC rose in price by 26% since January 1, after overcoming a multi-week plateau of around $17,000. The digital currency now accumulates five consecutive days, holding around $21,000. But can the trend continue for the rest of the year?
According to analyst Dave the Wave, bitcoin is still in the buy zone.
“We have seen nominal minor corrections and major real corrections, just as it should be with BTC on the road to price discovery,” he wrote on Twitter.
Lesser nominal corrections, and greater real corrections…. just as it should be with #BTC
on the way to price discovery. pic.twitter.com/d9dJNPAZ0S— dave the wave🌊🐫 (@davthewave) January 18, 2023
The analyst argued that the BTC price target is to reach $40,000 this year. The figure would represent a rise of about 90%, relative to bitcoin’s current value.
“There is a technical target of $42,000 this year to take BTC out of the buy zone,” he wrote in a tweet, in which he shared a chart with his analysis.
Dave the Wave also alluded to the similarity between the current uptrend and previous ones, such as in 2021, when bitcoin hit its all-time high of $69,000.
“There is a lot of talk about whether this next cycle will be similar to previous ones. The question for me is whether the cycles [or booms and busts] will be increasingly irregular as the market becomes more mature,” he noted.
A lot of talk about whether this coming cycle will be similar to previous ones.
The question to my mind is whether cycles [or booms and busts] will be increasingly *irregular* as the market becomes more mature.
Looked at this 2 years ago –https://t.co/RD5r1nSaNi
— dave the wave🌊🐫 (@davthewave) January 18, 2023
Bitcoin price is headed for $30,000
Fellow cryptocurrency analyst Kaleo, indicated in a tweet that he expects the BTC price to reach $30,000 in the coming days.
$30K is a magnet. pic.twitter.com/yhpJh0zwqt
— K A L E O (@CryptoKaleo) January 16, 2023
He stated that this figure constitutes “a magnet,” meaning that a price increase would be “imminent” for bitcoin. Which would constitute a rise of more than 40%, in relation to the current value of the cryptocurrency.
However, Kaleo emphasized that in the short term, there will be a drop below $20,000.
“We are still waiting for a wick below $20,000 before we see $30,000,” he mentioned.
The reason for the pullback
According to CryptoQuant analyst Joaowedson, a recent $250 million inflow to the Binance exchange sparked rumors that ended up affecting the rise in the price of BTC.
However, the influx of that money into the market meant a decrease in reserves. So, while there was more buying pressure to push the price up, the drop in the reserve also influenced the reduction in demand.
In addition, the analyst confirmed that the flow of Binance’s stablecoin, the BUSD, has changed in recent days. Meaning that only a few investors were participating in bitcoin sales.
In another CryptoQuant post, fellow analyst AxelAdler Jr asserted that there are still signs that the market could continue to be bullish.
The analyst alluded to how large bitcoin investors have massively accumulated the currency.
According to AxelAdler Jr, unspent transaction output value (UTXO) bands within the range of 1,000 to 10,000 BTC began to rise on January 11. Those with 100 to 1000 bitcoin also started accumulating BTC on January 16.
A continued accumulation could widely influence a price rise in the cryptocurrency market.
In conclusion, the price of bitcoin remains volatile and its value is still increasing significantly. This may be due to increasing demand in the market, as well as global economic and political factors.
However, due to the volatile nature of cryptocurrencies, it is difficult to predict with certainty the future price of bitcoin.
WARNING: This article provides general information about the price of bitcoin and should not be construed as financial advice. The information provided does not take into account your investment objectives, financial situation, or needs.
Before making any financial decisions, it is recommended that you consult a qualified professional. The price of bitcoin and other cryptocurrencies are highly volatile and their value can increase or decrease significantly in a very short period of time.
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