The recent surge in the price of Bitcoin has revived hopes in crypto assets. At this point, pseudonymous crypto analyst Cheds said a massive rally might not be over the top for BTC soon.
The crypto market struggle with rising inflation rates and other negative factors in 2022. However, in 2023, BTC has resumed positive price momentum with some investors believing that the worst days are over. Ched’s prediction is optimistic about BTC’s future performance.
— Cheds (trade quotes) (@BigCheds) January 14, 2023
Ched on Twitter gave his predictions on the price of BTC based on his technical analysis. He stated that Bitcoin could see a bullish reversal. In his words, above $18,200 opens the possibility of a reverse head and shoulders complexmultiple shoulders and head with neck base at $25,500.
His bullish forecast pushes Bitcoin up to the $37,000 level, which will represent a 76% increase from its current value. He suggested that fear of missing out (FOMO) will inspire more traders to continue BTC rallies.
Bitcoin also closed above its 200-day moving average. Ched called the move a sign of BTC’s strength. He thinks altcoins will also come to life once Bitcoin and Ethereum slow down to consolidate their positions.
Tim Draper, a BTC bull, was more optimistic about Bitcoin’s price development. His analysis predicted that Bitcoin would be worth $250,000 by the end of 2023.
Although the numbers look outrageous, he said Bitcoin would benefit from increased adoption in retail spending. Draper pointed out that only one in seven BTC wallets is owned by a woman. He expects more women to embrace BTC wallets.
Standard Chartered Bank had a more pessimistic view. In their forecast, Bitcoin could fall to around $5,000. They also said that as more exchanges struggle with financial problems and bankruptcy, prices will go down. According to their predictions, these financial problems will erode investor confidence in digital assets.
What’s behind the resurgence of crypto?
The crypto market has improved its outlook, with BTC leading the market. Although experts vary in their forecasts and predictions, several factors have led to this positive turn of events in 2023.
Generally, financial markets correlate with the US economy. For example, in 2022, inflation rates have increased as well as a rise in unemployment rates. Currency and equity markets have felt the impact of these rate adjustments, with cryptocurrencies following suit. But recent inflation data for December showed a drop that may have pushed crypto prices higher.
Furthermore, cryptocurrencies are now enjoying wider adoption and acceptance despite regulations In certain regions. They serve as a faster way to process payments, and their usefulness has exploded recently. Technological advances like Web3 also played a role as most crypto projects seek to join this trend. These factors have also driven up the prices of crypto assets.
Bitcoin (BTC) short or long?
BTC is above the $21,000 level and continued its positive price trend in 2023. However, traders might be skeptical of BTC wondering if it is a running of the bulls or a bull trap.
The asset is currently trading above its 50- and 200-day simple moving averages. This technical indicator shows that the short and the long term look encouraging for Bitcoin.
Featured image from Pixabay and graphic from Tradingview.com