Put simply, the price of Bitcoin has taken a massive hit since November 2021 and is currently down by more than 70% from its $69,000 all-time high.
2022 especially, was a tough one for the flagship cryptocurrency, from the endless bankruptcies in several web3 companies, the controversies and the scandals.
After the latest hit on the crypto market from the FTX/Alameda collapse, Bitcoin fell to its lowest point since December 2021 and struggled to rise from its $15,500 slump.
In the second week of 2023, however, Bitcoin has shown highly encouraging signs of a rebound, leading many to wonder whether $15,500 was indeed the market bottom or whether Bitcoin's rally to $21,200 was only the start of one of the largest bull traps of the year.
With that being said, it is important to keep in mind that there is a big difference between hope and hallucination, and there is no real way to figure out where Bitcoin might be headed or for how long it might stay there.
Some interesting price predictions from analysts, however, are worth considering.
This article outlines some "insane" price predictions by analysts regarding the price trajectory of the first and largest cryptocurrency by market cap (and, by extension, the entire cryptocurrency market).
Through a tweet, crypto analyst and investor Dan the Wave shared what he believes to be the price trajectory for the flagship cryptocurrency over 2023.
In his tweet, Dan the Wave shared predictions he refers to as a "technical target". He mentions that a price target of $42,000 this year will likely take Bitcoin out of the "buy zone".
Remember that the next Bitcoin halving will happen in 2024 and is believed to mark the next bull run for the flagship cryptocurrency and the rest of the crypto market.
According to the chart screenshot he shared, Dave the Wave believes that if Bitcoin breaks through the $21,300 resistance, the next price target would be the $25,500 zone.
And if Bitcoin breaks through this point sometime within the year, a rally is set to take straight up to $32,000 and then to $42,000 by the end of the year.
As illustrated by the analyst, the current resistance Bitcoin faces sit around its 38.2% Fibonacci level, the 25,500 zone sits around the 50% Fib level, while the $32,000 and $42,000 price ranges sit around the 23.6% and 1 Fib levels, respectively.
Dave's analysis is interesting because it begs the question: If Bitcoin has the $42,000 zone as its stepping stone into the next bull run, how high can the flagship cryptocurrency go in 2024 and beyond?
The Bitcoin Rainbow table is one of the most interesting statistical tools in predicting where the cryptocurrency's price may be headed over a certain timeframe.
The Bitcoin Rainbow Chart places coloured bands over the logarithmic regression curve to highlight market sentiment as price passes through each rainbow colour stage.
In simpler terms, the rainbow table indicates potential buying or selling opportunities.
The next halving in 2024 explains why Bitcoin declined so massively over the last two years. And a close look at the rainbow table illustrated above shows that a price rally may be coming soon.
Bitcoin crossed the red band in November 2021, reaching an all-time high of $69,000. This suggests that Bitcoin's price has always reversed following a prolonged slump.
Given that we are in the indigo zone, it is anticipated that Bitcoin prices will start to rise by year's end, following the same trajectory as in 2021.
Judging by this, Dave the Wave's predictions about where Bitcoin may be headed over the rest of the year and beyond don't seem so crazy anymore.
This is an interesting one.
ChatGPT has grown quite popular over the last few weeks. After OpenAI released its AI-based chatbot called "ChatGPT", OpenAI and ChatGPT quickly gained popularity.
ChatGPT has an impressive ability to provide responses to users' questions.
This chatbot's responses are very similar to real humans and cover a wide range of topics from politics to finance to interpersonal relationship advice.
With this in mind, we asked the chatbot what it thinks might happen with Bitcoin in terms of price over the year, and this is what it had to say.
ChatGPT, a language-based AI model, has been programmed never to give investment advice. As illustrated above, the chatbot's response is a "safe" with no facts or figures.
However, here is what it returned, rephrasing the question and asking if the chatbot agrees with the first twitter price prediction from Dave the Wave.
This is another safe answer, as illustrated above. However, ChatGPT does mention that a price higher than $42,000 may be possible in 2023.
Price predictions can't always be positive, can they?
It is important to make no mistake in thinking that Bitcoin will easily get back up to its all-time high.
The major bear market started after Bitcoin rejected the $48,000 zone. This price zone might be one to watch out for over the course of 2023.
Despite widespread FUD and uncertainty about Bitcoin's current bullishness only being a choreographed part of a larger bull trap, the flagship cryptocurrency has made its way above several psychological and technical resistances.
However, the crypto trading firm QCP Capital has sent out a warning to any and all investors who are beginning to get carried away by Bitcoin's bullishness.
In QCP capital's warning, its author mentioned that the crypto winter may be far from over and that it may be a mistake to assume that just because the cryptocurrency made its way above a few resistances, the fight is over.
Judging by the Elliott wave analysis on Bitcoin released by the firm, the current bullishness on the cryptocurrency is only wave 4 in a larger Elliott wave, and the bullishness on Bitcoin may be a bull trap after all.
Judging by this, a dip from this point would take Bitcoin straight down to the $15,000 zone or very well below.
At the time of writing, the bears have begun to show some of their strength.
After hitting a local high of $21,600, Bitcoin has printed several red candles on its daily chart, indicating that the bears are starting to catch up to the bulls.
The previously established $21,500 resistance does not seem to be holding well and appears to be on the verge of a breakdown as the flagship cryptocurrency's price may likely decline to the bottom.
The trading volume of the cryptocurrency does not appear to be as strong as it was and has moved up by 27.79% to a total of $30 billion at the time of writing.
Coupled with the 3% decline, it is clear that the bears may be pushing back after the bulls had their fun.
The Moving averages confirm this hypothesis, and the RSI signal line has also declined to the 78.8 mark after hitting 89.2 this week.
Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.