Bitcoin (BTC) is ending 2022 on a bearish note, with the asset having corrected by over 70% from the all-time high of almost $69,000 set in November 2021. Notably, the flagship cryptocurrency is entering the new year still plagued by the prevailing macroeconomic factors alongside the fallout from incidents such as the FTX exchange collapse.
Therefore, the asset’s performance at the start of 2023 remains of interest to investors considering that Bitcoin continues to harbor a sustained sideways trading pattern.
In line, the machine learning algorithms at the digital asset tracking website PricePrediction project that Bitcoin will likely undergo further correction to trade at $15,532 on January 31, 2023. The price prediction represents a drop of about 7% from Bitcoin’s price at the time of publishing.
As per the 30-day forecast, Bitcoin will likely undergo a consistent drop in value across the first month of 2023. However, the tool projects that Bitcoin can potentially trade at $16,407 on the first day of 2023.
Notably, the forecast puts into consideration different technical indicators, such as the Bollinger Bands (BB), moving averages (MA), moving average convergence divergence (MACD), relative strength index (RSI), and others.
Bitcoin price analysis
By press time, Bitcoin’s price was still consolidating, trading at $16,565 with minor gains of about 0.50% in the last 24 hours. On the weekly chart, the asset has corrected by about 1.7%.
Bitcoin’s price movement in recent days has highlighted the inability of both bulls and bears to mount a formidable move in either direction. Commenting on the recent price action, Kitco News analyst Jim Wycoff noted that traders are awaiting a spark in Bitcoin’s price.
“Traders are waiting for a spark to ignite price action in what has been a quieter holiday trading period. Neither the bulls nor the bears have a near-term technical advantage, which suggests more narrow-range, sideways trading in the coming days. Look for more active trading as the new year begins,” he said.
Elsewhere, Bitcoin’s technical analysis on TradingView is dominated by bearishness, with the summary aligning with the ‘sell’ sentiment at 14 while moving averages are for the ‘strong sell’ at 13. Oscillators are neutral at 1.
What’s in store for Bitcoin in 2023
After a turbulent 2022, cryptocurrency industry players have offered varied opinions on Bitcoin’s outlook in the new year. As reported by Finbold, 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.
Stefan Ristic, a crypto miner running BitcoinMiningSoftware.com, suggested that Bitcoin will have a depressed 2023. However, he pointed out that the upcoming halving event in 2024 will be a critical catalyst for a bull run in 2025.
Interestingly, Aurelien Ohayon, CEO of strategy services platform XOR, suggested that Bitcoin could undergo a bull run in 2023. In his analysis, the maiden crypto has historically experienced a bull run after four years, and the bear market usually lasts for about a year.
Elsewhere, according to reputable crypto analyst Vince Prince, Bitcoin could potentially reach $1.8 million by 2026 if it follows the ‘Merry Christmas Cycle.’ As per the cycle, Bitcoin has attained historic highs during Christmas for the past three years, and the trend has been replicated in 2022 despite the bear market.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.