Bitcoin is often regarded as the chart-topper of the industry. The token has experienced a unique run, touching an all-time high of nearly $70,000 within a decade of its existence.
However, things have been different for the token in 2022. The project that was moving at a sky-high range of $50,000 has succumbed to a low of $15,000 in just 11 months. Overall, the industry’s benchmark token has been a year of ups and downs.
But if experts are to be believed, Bitcoin will top the $100,000 mark next year, followed by a record-breaking bearish market. So how far is the statement really hold? Let’s find out as we explore the price movement of the token and see its potential future.
Insight Into Bitcoin’s Price Movement
Consistent Upward Trend
Bitcoin was the first cryptocurrency to launch in 2009. While the token had developed a community that favoured decentralization, the price movements of the token were inactive primarily until 2017. Bitcoin gained motion after the spread of ‘cryptocurrencies’ and kicked its initial bullish run during February 2017. The token made an ascending triangle, reaching $17,800 within a year.
However, the token could not keep up with its 200x growth as the resistance around 17,800 points was too strong to be broken. BTC soon followed a reverse cup and shoulder movement, falling to the $6,000 mark by the end of the year. Following this, the first half of BTC witnessed another ascending triangle, giving the token a chance for correction and doubling its value to $12,000.
Descending Scallop: Equal Bearish & Bullish Trend
While the first half of 2019 was positive and indicated a bullish run, the latter half indicated a bearish pattern with a measured move-down pattern, limiting the token to the $7,000 range.
2020 was another bearish year for BTC as the token had a fall during the initial few months. The token formed a pennant formation, moving down to $5,400 around the second week of March 2020.
The sudden drop is said to result from a global rejection of the decentralization concept for Bitcoin, leading to negative market sentiment, followed by a fall. But the latter half was a corrective phase for the token as it could touch the $30,000 mark by the end of the year, setting a bullish pattern in the process.
Diamond Tops: Significant Upward Trend With Equal Fall & Revision
Moving ahead, 2021 was a significant year for the token’s price movement. BTC was able to shoot up to its current all-time high of $68,789.63 on November 10. The token moved 138.8% in 11 months.
However, the continued lockdowns, the introduction of a new covid variant, the SEC’s rejection, and China’s ban on cryptos led to a market meltdown. All these factors resulted in a market breakdown, putting BTC in a bearish market and pushing it down to $47,000 by the year’s end.
Will Bitcoin Shoot Up? Is The Shoot Up To $100,000 By 2023 Possible?
2022 has been a bearish year for Bitcoin so far. While the token recovered from its initial $36,000 price range in January, it has followed a downtrend since April. As a result, the token has dipped by 30% in eight months.
Patterns suggest that the token’s current price movement matched the Q4 bear market indicators in 2018.
There are mixed reviews on the market as it’s mostly divided into two groups. Some believe that Bitcoin price will dip below the $15,000 mark, while some analysts believe it’s the last few months of crypto winter.
Experts like ‘Credible Crypto’ suggest an ‘interesting territory’ in the token’s future, and 2023 will constitute a significant turning point for Bitcoin’s price journey.
Overall, the market sentiments are majorly against the token as few investors are optimistic about a change in the pattern. Therefore, while there are chances of BTC switching to a positive bullish trend, it’s remotely possible that the token will shoot over $100k in 2023.
Besides, technical charts indicate such possibilities only in the long run. So if you’re an investor waiting to cash in your Bitcoin earnings, we suggest you wait for a few more years.
Bitcoin’s Next Move: An Insight Into The Practical Price Movement
Bitcoin has been trading near the $16,500 range since November 23, recovering from its initial $15,500 dip. Interestingly, this correction came at a time when people least expected it.
The Market Sentiment & Events Behind The Speculation
The correction happened amidst the current conditions when Genesis Global, a lending and trading organization, claimed to ‘temporarily suspend redemptions and offer new loans’ on November 16.
This invoked a negative market emotion, considering that FTX had taken a fall earlier that week. However, after causing initial mayhem, the firm refuted the claims of ‘insolvency’ and claimed that it faced difficulties.
Adding to it, contagion risks from the implosion of FTX-Alameda continued to impact the market negatively while the industry came together to improve such insolvency and transparency risks.
For instance, By bit released a $100 million fund to improve operations over high-frequency trading institutions and invoke a positive market sentiment. More recently, on Nov. 25, Binance published proof of funds for its BTC deposits.
So while the market continues with negative market sentiment, the news and moves mentioned above could have helped push the price of Bitcoin away from another dip.
Future & Options Market Hint A Bearish Market
Fixed-month futures contracts generally trade at a higher premium among regular spot markets as sellers demand more premium to withhold the settlement for longer. This results in future trades selling at an annualized premium of 4-8%.
Considering the above data, the current future markets have turned the opposite. As a result, traders have flipped negative, and the trend might continue for a few weeks.
In addition, the options market suggests that Bitcoin will likely retest after the revised price of $16,500.
What’s Your Take?
While the $100k mark may be a distant dream, the analysis suggests a future positive market movement for Bitcoin. So now that you have an idea of the future of the token, what’s your take after this Bitcoin news?