Bitcoin (BTC) Price Surge May Consolidate at $26K for Some Days! Here’s Why
Bitcoin (BTC) surged to its 2023 peak at $26,550 on March 14 after the United States inflation levels for February were in line with market expectations, indicating favorable macroeconomic conditions for risk-on buyers. However, some on-chain and market indicators suggest a potential correction in the near term.
Sell Pressure Increases
On March 13, Glassnode’s exchange flow data recorded the most significant inflow to exchanges since May 2022, leading to potentially higher selling pressure. In addition, the coin days destroyed indicator, which measures the time-weighted transfers of Bitcoin, shows a small spike, indicating that old hands are moving coins. This signals profit booking by long-term holders, which can lead to a correction.
Elevated Funding Rate and Broadening Wedge Pattern
Furthermore, the funding rate for Bitcoin perpetual swaps is elevated with the latest Consumer Price Index print, meaning more traders are betting on the upside with leveraged positions. This increases the risk of a correction. BTC price is currently forming a broadening wedge pattern, depicting a heightened level of volatility, with both buyers and sellers pushing the price beyond support and resistance levels, resulting in quick reversals.
Positive Reaction to CPI Data
On Tuesday, the Consumer Price Index (CPI) for the US Bureau of Labor Statistics was up by 0.4% on a monthly basis, while the yearly rate declined to 6.0%. The CPI for the month met the forecasts, which is expected to keep the Federal Reserve committed to bringing down inflation to its 2.0% target. The crypto market reacted positively, with Bitcoin price rising to trade at $26,382, as lower inflation generally weakens the US Dollar, the reserve currency in which Bitcoin is priced.
Trend Direction and Profit Objective
From the weekly timeframe, Bitcoin’s trend direction has been south since topping out just beneath the $70,000 mark in late 2021. However, last week’s hammer candlestick pattern off the low $19,568, price action on the weekly scale—aided by the RSI attempting to cement position north of its 50.00 centreline—is threatening to take aim at a pattern profit objective set at $26,774, a level sheltered just south of weekly resistance at $28,844.
While the macroeconomic conditions currently favor risk-on buyers, certain on-chain and market indicators suggest a potential correction in the near term. The elevated funding rate for Bitcoin perpetual swaps, the broadening wedge pattern, and the profit booking by long-term holders due to the significant inflow to exchanges since May 2022 are all indicators of a potential correction.
Traders and investors should monitor these indicators to make informed decisions. Bitcoin was hovering around $25,000 at the time this article was written.
Is Bitcoin Price Doomed to Consolidate in 2023? Find Out Why Experts Say Yes!
Despite the Bitcoin meltdown of 2022, many industry insiders are confident in Bitcoin’s long-term prospects. In January 2023, Bitcoin experienced a 40% increase and is expected to reach a new all-time high. Experts in the cryptocurrency market see the ban on crypto ads during the National Football League’s (NFL) Super Bowl and the increase in US inflation as temporary hiccups on the way to more bullish momentum.
During the recent upswing, many potential cryptocurrencies reached their all-time high, with Bitcoin reaching $69k and others experiencing smaller but still impressive gains. Similarly, these alternative cryptocurrencies saw significant price declines after the Bitcoin crisis of 2022. The price of Bitcoin is gaining steam in 2023, with some crypto investors and analysts believing it can reach a new all-time high in the coming months.
Popular crypto analyst Benjamin Cowen suggests that Bitcoin is expected to remain in a tight trading range for the majority of 2023. Cowen uses the MVRV Z-score indicator, which measures the degree to which an asset’s realized value exceeds its market value. According to Cowen, the historical movements of the on-chain indicator suggest that Bitcoin might consolidate in a range for at least another four years until 2024 before a prolonged bull market surge.
Cowen predicts that this year will be a recovery year for Bitcoin, with prices moving up and down equally. He expects the MVRV Z-score score to rise above the zero line again and then fall below it. Cowen believes that the year leading up to the halving event, in which miners’ Bitcoin payouts are slashed in half, will see the MVRV Z-score and the price of Bitcoin explode following a year of recovery. He predicts that the years following the next halving in 2024 will experience a persistent upswing in the MVRV Z-score.
Overall, it is essential to conduct thorough research before investing in crypto assets, as the market currently experiences both gloomy and optimistic analyses.
SHIB & DOGE Price Consolidate: Will The MemeCoins Regain Bullish Momentum in 2023?
As the markets are steeping into a fresh yearly trade, the bearish clouds are expected to perish. Meanwhile, the possibilities of a decent upswing emerge as the top 2 memecoins appear to be preparing for a giant move ahead. Shiba INU’s Shiabrium is all set to explode in 2023 while Dogecoin is expected to be pushed as Elon Musk continues to remain Twitter CEO.
Shiba INU’s lead developer took on Twitter recently to update the progress of Shibarium. As per the update, the layer 2 protocol is on the final stage of its creation. The SHIB price which is consolidating around $0.000008 but sliding slowly towards the bottom.
The SHIB price is continuing to trend within a falling wedge which is considered as bullish largely. With an extended bearish pressure, the price is believed to drop towards the lower support of the channel in the coming days which may trigger a rebound to flip towards the north and regain the levels above $0.00001 during Q1 2023.
Moving ahead, Dogecoin price continues to trade below $0.07 and is constantly facing rejection above these levels. The price is testing the crucial support levels and trying to hold right above these levels. A significant bearish pressure may compel the price to break below the last point of defense at $0.056 which cannot be completely discarded.
The dropped volume and slashed volatility are pointing towards the bearish outlook for the crypto. Therefore, with the beginning of the fresh yearly trade, the prices are believed to drop heavily, dragging the price towards 2022 lows. Here if the bulls re-enter strongly, a significant upswign may lead a notable rebound reclaiming the levels at $0.07 initially and later at beyond $0.088.
The memecoins are believe to regain bullish momentum in 2023, due to which a notable rally may uplift the Shiba INU (SHIB) & Dogecoin (DOGE) prices, once the bulls are triggered after meeting the lows.
Bitcoin Price 2023: BTC Price Will Consolidate at This Level – Predicts VanEck’s Research Head
A dramatic sell-off in the crypto market threatens to cancel out the previous recovery cycle in Bitcoin, Ethereum, and other digital assets. Along with the market leaders, the bulk of cryptocurrencies fell and approached the November low while stepping into December with a grim outlook. Matthew Sigel, the head of digital assets research at global financial juggernaut VanEck, predicts significant fluctuations for Bitcoin in the coming months.
While presenting his Predictions for Bitcoin price 2023, Sigel predicts that Bitcoin will fall between the $10,000 and $12,000 range in the first quarter of next year. According to Sigel, Bitcoin miners are currently unprofitable. He also predicts that there will be a wave of miner bankruptcies, which would represent the low point of the crypto winter.
The median market cap of the MVIS Global Digital Assets Mining Index is presently under $180 million, with nearly all components burning cash and trading considerably below book value. He believes that many miners will restructure or merge as Bitcoin mining becomes increasingly unprofitable due to recently increased electricity prices and lower Bitcoin prices.
Here’s When BTC will Hit $30k
The MVIS Global Digital Assets Mining Index measures the performance of companies that generate at least half of their revenue from mining digital assets or other crypto-mining-related activities. In terms of a positive estimate, VanEck’s head of digital assets research believes Bitcoin might reach $30,000 by July of next year as monetary and fiscal policies are eased.
“Meanwhile, should our recession expectations materialize, the Federal Reserve would likely pause raising rates amidst softening inflation, while money printing and government budget deficits continue. Merely a lack of bad crypto-specific news, under the above scenario, could cause the price of Bitcoin to climb a wall of worry back to $30,000 again.”
Ripple (XRP) Price Rallies Significantly While Bitcoin & Ethereum Consolidate, What’s Next?
Ripple price ignited with a strong rebound during the previous trading day and recorded 20% gains until the press time. Meanwhile, the price is not facing any extreme bearish pressure, which could have weakened the bulls before illuminating the rally. However, the asset has been trying very hard to sustain a firm upswing, which may now be supported by the rising buying volume.
After a significant drop, the XRP price found a strong base at $0.32, withstanding the bearish action that intended to drag the value lower, but failed. The price experienced a fresh increase to mark the daily highs above $0.35 while the entire crypto space, including Bitcoin & Ethereum, continued to hover below their pivotal resistance levels.
The price rose above the 23.6% FIB level which may now induce a significant momentum to head towards the next target above $0.5.
The price gained strength after it soared high above $0.36, however, it continues to trade below the 100-day MA at $0.4, which may further trigger an upswing to hit $0.4. Presently, the asset is facing a slight hurdle at $0.38 where-in a minor bearish action is noticed. However, after a brief consolidation, the asset may slice through these levels and also break above the key resistance area at $0.385 to reach $0.4.
Moreover, the newly formed double-bottom pattern may also result in a significant upswing in the coming days. The XRP price is strongly heading towards the neckline at $0.39, which may further push the price higher. Collectively, the bearish action appears to be quite restricted as of now; meanwhile, the Ripple vs SEC lawsuit is also able to induce huge confidence in the market participants.
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Here’s Why Bitcoin (BTC) Price Might Consolidate Within $17,567 Level in September – Coinpedia – Fintech & Cryptocurreny News Media
In spite of increasing volatility and market pressure, Bitcoin (BTC) struggles to stay above the $20,000 threshold. Additionally, the direction of the market in the upcoming months will be determined by the U.S. Fed rate hike on September 21.
Rajan Dhall, an analyst for Kitco News, says that $25,066 is one of the important essential levels to watch for since it will indicate a chance of recovery and provide a way out of the prolonged bear market.
If Bitcoin has any chance of reaching this level, it should go for $21,760 first and rely on the bulls to hold the position. On the other hand, if bears continue to be strong, Bitcoin may consolidate to a low of $17,567.
However, it is important to note that Bitcoin has seen a small increase following the US employment news. Of note, 315,000 were added in August, which was slightly more than anticipated given the rising interest rates and the weak economic expansion.
By the time of publication, Bitcoin was trading around $20,117, up nearly 3% over the previous day. The improvements also contributed to the cryptocurrency market capitalization approaching the $1 trillion threshold.
Employment Report Turned Bullish !
In addition, with Bitcoin in turmoil due to macroeconomic issues, there is expectation that the employment report would likely encourage the Federal Reserve to take more drastic steps, like hiking interest rates, to rein in the inflation that is out of control.
A favorable employment report was expected to drive Bitcoin to around $15,000. The $20,000 stake may be in jeopardy because the asset has recently been linked to macro sentiment.
Overall, if Bitcoin is able to maintain $20,000, it will probably encourage investors to believe that the crypto market has reached a bottom.
The “HODL” mode appears to have been turned on amid anticipation for the upcoming Bitcoin course. In spite of the current weak market conditions, 62% of Bitcoin owners have not sold the asset in this example in over a year.