Bitcoin has risen by almost 80% in the first six months of 2023. However, as has been the case in the past, the cryptocurrency has experienced periods of stagnation before making any significant moves.
This has resulted in a consolidation phase that has left investors waiting in anticipation for the next direction. And if attempts to breach upper resistance lines fail, it could jeopardize most of the gains made in the last few months of 2023.
Will Bitcoin Plummet To The Depths?
Crypto analyst under the pseudonym “Captain Faibik” on Twitter, has recently made some bold predictions about Bitcoin’s future.
Despite the current bullish sentiment in the market and the possibility of reaching a new yearly high for 2023, Captain Faibik warns that bulls are not “out of the woods yet.”
Faibik believes that Bitcoin may retest the $20,000 region in the upcoming months of August and September. However, Faibik also believes that the Bitcoin bull run will officially start in November 2023.
On the other hand, the recent confirmation of a 2-week buy signal, a successful retest from the breakout, and the Moving Average Convergence/Divergence (MACD) crossing above the “0” level for Bitcoin have caught the attention of traders and investors alike. These indicators have only occurred in 2015, 2019, and 2020, leading many to believe that a significant price movement is imminent.
Trader “Moustache” highlights that while history doesn’t repeat itself exactly, it often rhymes. This means that while past events can provide insights into potential market movements, there are no guarantees in the volatile cryptocurrency market.
However, the fact that these same technical indicators have been observed in the past and have been followed by significant price movements is a cause for excitement among Bitcoin investors.
The 2-week buy signal is a particularly significant indicator, suggesting that Bitcoin is oversold and undervalued, making it an attractive investment opportunity. The successful retest from the breakout is also a positive sign as it indicates that the breakout was not a false signal, and the new price level has been validated.
The MACD crossing above the “0” level is another bullish indicator as it suggests that the momentum is shifting in favor of the bulls. This is important as it indicates that the buying pressure is increasing, which could lead to a significant price movement shortly.
BTC Set To Soar?
Economist and trader MikyBull has been closely analyzing the pre-halving price action of Bitcoin for 2024. According to MikyBull, the current accumulation phase is wider than previous halvings, indicating that the post-halving rally may take longer to materialize. However, the wider accumulation phase could also result in a more significant price increase.
Furthermore, Bitcoin’s price has already tapped into the bi-yearly resistance, which is a crucial price level that has historically led to breakouts. This indicates that a price breakout is imminent, and MikyBull anticipates a rally before the halving event with a price target between $35,000 and $40,000.
At the time of writing, Bitcoin is trading at $30,600, representing a modest gain of 0.4% over the past 24 hours. It is unclear whether the cryptocurrency will continue to hold this level or if a significant pullback will occur.
Nonetheless, the current market sentiment favors bullish investors, and Bitcoin appears to be well-positioned for another attempt to break through the $31,000 line. If successful, this could pave the way for the cryptocurrency to achieve further milestones throughout the remainder of 2023.
Featured image from Unsplash, chart from TradingView.com