Bitcoin (BTC) Price to $42k in 2023 is Highly Plausible: CryptoQuant Analyst
Bitcoin price is in the third week of correction after a 40 percent relief rally in January. Trading around $21.7k, the instrument is facing taunting times ahead following the 50 and 200 WMA death cross that occurred for the first time in its lifetime. As the bulls weaken both on the short and large timeframes, the death cross is expected to be a huge resistant trend line to crash in the coming quarters.
Notably, the bulls will have to act immediately to revert the death cross. Moreover, sell pressure is expected to increase from short-term holders and miners exiting the bearish market.
CryptoQuant Sees a Different Scenario for Bitcoin
According to CryptoQuant analyst Oinonen_t, the Bitcoin market capitalization could double to about $800 billion as the price has a significant chance of hitting $42k in 2023. According to Oinonen, Bitcoin’s exchange stablecoins ratio (ESR) and exchange reserves have advised the forecast of $42k by the end of this year. Additionally, as the Bitcoin market approaches the 2024 halving, the possibilities of doubling in value are higher than before.
According to CryptoQuant’s research, the exchange Bitcoin reserve has been dropping for the past year, meaning a higher accumulation. The data suggest Bitcoin holders are preparing the pre-halving accumulation cycle that historically leads to a spike in demand against the declining supply.
His sentiments were echoed by pseudonym CryptoQuant’s analyst Yonsei_dent, who noted that Adjusted Spent Output Profit Ratio (aSOPR) on a 400-day moving average has reached the previous cycle’s low, suggesting that further declines are unlikely.
“Compared to the time of entry into the 2019 bull market, it seems a bull transition is in the process of passing through the bottom. However, in the case of the 2015-2016 Bottom, Supply in Profit (%) went down after entering the Transition phase, and the Bottom period became longer….” Yonsei_dent noted.