While the price of Bitcoin (BTC) started 2023 above $16,550, it was trading at its highest level since August 2022 above $25,550 a week ago. Up more than 40% over the year 2023, how far can Bitcoin go in 2023?
What’s moving the price of Bitcoin in 2023?
Among the factors which will have the greatest influence on the price of Bitcoin this year, we of course find the evolution of inflation in the world, as well as that of global monetary policies.
With a slight slowdown in inflation observed for some time in certain economies, investors anticipate that central banks could slow down their pace of rising rates in certain parts of the world. Some scenarios even anticipate a reduction in interest rates in certain economies to restart growth.
Thus, riskier investments like Bitcoin could be favored by investors. For many, the evolution of Bitcoin in 2023 will be determined by the level of risk appetite in the market.
Another important factor concerns the involvement of professional investors which could accelerate this year.
Adoption of digital assets increased among professionals in the United States (42%) and Europe (67%) according to2022 Fidelity Digital Assets Annual Study.
While 58% of institutional investors surveyed in North America, Europe, and Asia acquired cryptos during the first half of the year 2022, they have stated that they intend to invest in Bitcoin at some pointshortlye.
Since institutional investors have much greater purchasing power than typical individual investors, it is possible that their growing presence in the market could drive the price of Bitcoin higher this year.
Finally, the technological developments of Bitcoin in 2022, such as the growth of the lightning network or the arrival of new international companies in Bitcoin mining, and those to come, such as the halving of 2024, should support resilience and the performance of the Bitcoin network, thus attracting more investors.
Technical analysis of the Bitcoin price in the short and medium-term
On the daily chart, the price of Bitcoin is below its 9-period moving average,
the Parabolic SAR technical indicator indicates that short positions are more relevant while there is in its neutral zone around 50. The RSI also seems to have formed a bearish divergence.
If the scenario of a continuation of the decline is confirmed, then Bitcoin could evolve toward the next two support levels located around $22,399 and $21,356. In the event of a rise in Bitcoin, the next levels to watch would be those around $24,821 and $28,497.
Bitcoin what are the experts’ predictions for 2023?
As a difficult 2022 for crypto-investors drew to a close, industry professionals shared their predictions for the biggest cryptocurrency on the market – and some are quite optimistic – some might even say daring!
According to popular crypto-investor Tim Draper, the price of BTC could, for example, reach $250,000 this year. Although this forecast had already been made in 2022 by the billionaire, he had relatively well anticipated the Bitcoin rebound in December.
Despite the dramatic drop in the price of the token, the volume of trading was indeed increasing, thus supporting the idea of future price increases. He also believes that the personal sector has not yet entered the market, which will undoubtedly contribute to the increase in the price of the asset.
Alistair Milne, creator of Altana Digital Currency Fund, makes a more “reasonable” forecast because he predicts that the price of Bitcoin will soar to around $45,000 this year, particularly depending on the evolution of inflation and the reactions of central banks.
In the longer term, the American investment bank Goldman Sachs estimated in early 2022 that the price of Bitcoin could increase to $100,000 by 2027 by taking more market share from gold.
There are of course also pessimistic scenarios in which Bitcoin no longer exists or falls violently.
The Standard Chartered Bank has, for example, estimated that Bitcoin could fall to $5,000 this year. To support this scenario, the bank highlighted the continued fall in technological stocks which would have accelerated the decline in BTC, thus leading to bankruptcies in crypto. -sphere.
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