Bitcoin Eyes $50K as Price Fractal Emerges
Bitcoin (BTC) has experienced a 70% increase in value so far in 2023, thanks to a banking crisis and optimism surrounding the approval of a BTC exchange-traded fund (ETF) in the United States.
2020 Bitcoin Price Fractal Suggests $50K Target
Bitcoin’s current market trend closely resembles its price movement from 2017 to 2020. As a result, popular BTC analyst Stockmoney Lizards suggests that it could repeat a crucial breakout moment for a significant bull run. The breakout in 2020 led to Bitcoin reaching its all-time high of $69,000 in November 2021. If history repeats itself, the analyst predicts that BTC’s price could reach the $45,000-$50,000 range by the end of this year.
However, unlike the price rally in 2020, Bitcoin is currently facing challenges due to the tightening measures implemented by the US Federal Reserve, resulting in reduced liquidity in the market. Since April 2022 when the Federal Reserve’s balance sheet peaked, Bitcoin’s price has declined by 40%.
Standard Chartered Also Bullish on $50K Bitcoin
Standard Chartered also believes that Bitcoin will reach $50,000 by the end of this year. Geoff Kendrick, the global head of research and chief strategist at Standard Chartered, argues that increased profitability for miners will lead to a decrease in their need to sell BTC. This reduction in supply combined with potential rising demand will push BTC prices higher. Notably, there was a surge in the number of Bitcoins held by miners during the Ordinals hype in May 2023.
Bitcoin Price Technical Pattern Points to $32,000
Another technical analysis suggests that Bitcoin could reach around $32,000 by the end of 2023. BTC is currently in the breakout stage of a bump-and-run reversal (BARR) Bottom pattern. This pattern typically resolves after the price breaks above its descending trendline resistance and rises by the maximum height of the pattern. A similar pattern played out accurately in Dogecoin’s case in June 2022. If this pattern holds true for Bitcoin, its price could increase by an additional 12.75% by the end of the year.
Hot Take: Bitcoin’s Potential for Growth
Bitcoin has shown significant growth potential in 2023, with a 70% increase in value. Analysts predict that it could reach $50,000 or even higher by the end of this year. The resemblance to Bitcoin’s previous price movements and the reduction in BTC supply from miners contribute to these optimistic projections. However, it’s important to consider external factors such as tightening measures from central banks that may pose challenges to Bitcoin’s growth. Despite these challenges, Bitcoin remains an attractive investment option with the potential for further gains.
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