The price of Bitcoin has gradually increased since the start of the year, a trend different from what…
The price of Bitcoin has gradually increased since the start of the year, a trend different from what the ecosystem witnessed last year following the collapse of several notable and influential cryptocurrency structures that led to a market downturn.
CoinMarketCap data reveals that Bitcoin moved $30,000 for the first time since June 2022 in the last few days. Vetle Lunde, a senior analyst at K33 Research, has predicted that the prices could reach $45,000 next month.
“The foremost cryptocurrency has gained 82% since December 31, easily outperforming the Nasdaq 100 tech index’s 19% gain. Similarly, gold has risen 9.6% this year, making it another investor favorite.”
“Bitcoin soared past where it stood when hedge fund Three Arrows Capital imploded last summer, but it is still more than 50% below its all-time high of November 2021. Expectations that the US banking crisis in March will force the Federal Reserve to pause rate hikes reinforce Bitcoin’s partial recovery,” TechNext reported last week.
The report added, “This has fueled Bitcoin bulls’ belief that the token will benefit from lower real interest rates and provide a haven from the turmoil in traditional finance. In the last 24 hours, the global crypto market has risen by 4%, as the market cap currently stands at $1.2 trillion, with 47% dominance by Bitcoin (BTC).”
Presently, analysts are hyped that the coin is keenly following its early 2019 surge, and to the pleasure of many crypto enthusiasts and investors, this is great news. Predictions are that the prices could reach $45,000 next month, Vetle Lunde, a senior analyst at K33 Research, said.
The largest cryptocurrency by market capitalization has increased by 80% this year, outperforming traditional risky assets such as the tech-heavy Nasdaq index by a wide margin. The rebound follows a 12-month drop in which prices fell 76% and bottomed out last November. According to Lunde, the drop and subsequent recovery are similar to the trend noticed in the 2018-19 bear market in terms of length and trajectory.
Bitcoin is expected to reach massive highs
“Bottoms in both cycles lasted for approximately 370 days. And the peak-to-trough return after 510 days of both cycles reached 60%,” Lunde said in a note sent to clients last week. “In 2018, the bear market rally topped 556 days after the 2017 peak, on June 29, 2019, with a 34% drawdown from the peak.
“While history is far from likely to repeat in a similar fashion if the fractal were to continue – BTC would peak around May 20 at $45,000,” Lunde said.
Bitcoin fell 84% in 2018, with prices bottoming near $3,100 in December. The trend changed in the following months, with prices climbing to $3,700 by the start of 2019 and rising as high as $13,800 by the end of June. Bitcoin’s year-to-date rise in value has been popularly referred to as a “hated bullish move” on Twitter by crypto analysts, given that some notable traders were expecting a continuing sell-off in the first quarter.
A “hated” bull market usually begins at the height of pessimism. It reaches a fever pitch when investors who lowered risk in anticipation of a prolonged decline start to feel underexposed and get on the bullish bandwagon.
“The hated rally of 2019 ended with a significant blow-off top before BTC resumed trading at a 40-60% drawdown from its 2017 ATH,” Lunde noted, using the acronym for an all-time high. “The early 2023 rally has all the hallmarks of a hated rally.” However, according to the report gotten from CoinDesk data, Bitcoin declined by 1.4%, dropping to $29,850.
The predictions are the major highlight of today’s report. Investors will be pumped by these exhilarating predictions, with hopes that the good times for cryptocurrency are here and are not gone, as deemed by some institutions in the latter part of 2022.
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