After a turbulent year, Bitcoin (BTC) investors are monitoring how the flagship cryptocurrency will likely perform in 2023. Notably, moving into the new year, Bitcoin is still operating in an environment of high inflation that partly contributed to the asset losing its value by over 70% from the all-time high of almost $69,000.
Looking back at 2022, Bitcoin has been among the worst-performing assets. As per a previous Finbold report, Bitcoin has been the worst-performing financial market asset in 2022, with returns of -60%.
Indeed, Bitcoin is likely to end the year in a consolidation phase after failing to capitalize on a recent relief rally that was inspired by positive macroeconomic factors. At the same time, Bitcoin has been weighed down by the crypto sector scandals like the FTX trading platform collapse.
Bitcoin price analysis
By press time, Bitcoin was trading at $16,490 with a daily correction of about 0.3%. On a year-to-date basis, the maiden digital asset has plunged almost 65%.
At the current price, Bitcoin has been unable to reclaim the $17,000 support level. Notably, breaching the position is viewed as instrumental in helping the asset rally. In the meantime, crypto trading expert, Michaël van de Poppe noted that if BTC surpasses the $17,400 and $17,600 resistance levels, the asset will be in line for another relief rally.
A review of Bitcoin technical analysis indicates that the asset is in a bearish mood. In particular, a summary of the daily gauges on TradingView recommends a ‘strong sell sentiment at 16, while moving averages are also for a ‘strong sell’ at 14. Oscillators are for ‘sell’ at 2.
What does 2023 hold for Bitcoin?
Undoubtedly, Bitcoin investors will be looking at how the macroeconomic factors play out and the possible Federal Reserve is pivoting in 2023. For instance, David Kemmerer, CEO of CoinLedger, a crypto tax software, believes that Bitcoin is likely to correct further in the first half of 2023 expecting the fallout from the FTX collapse to spread further.
At the same time, the Bitcoin community hopes the current consolidation phase can lead to a price bottom and act as a base for the asset to rally. Interestingly, there are signs that Bitcoin could be poised for a new rally, considering that the asset has recovered faster after the FTX collapse than other capitulation events.
Furthermore, in looking for a bottom, Bitcoin could correct to $9,000. Notably, the level acted as a foundation for the last bull run.
However, as reported by Finbold, the cryptocurrency community at CoinMarketCap remains bullish on the price of Bitcoin. The community is projecting that Bitcoin will likely trade at $19,640 on January 31, 2023.
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