2022 has been a tough year for all cryptocurrencies including Bitcoin. Bitcoin, the world’s largest cryptocurrency, has lost nearly 65% of its market value over the course of 2022. Cryptocurrency enthusiasts have been caught off guard by a series of unfortunate events such as the Terra Luna crash. cryptocurrency exchange FTX and impending macroeconomic conditions.
But there are several questions on everyone’s mind: what will happen next? Will Bitcoin rise again? Or will it crash like in 2022?
Here is a detailed read that will help you learn all the possibilities for Bitcoin prices in 2023.
Will Bitcoin make a comeback?
(Taurus View)
Currently, Bitcoin is trading comfortably above the $18,500 levels, a positive change in its price since last November. At the time of writing, Bitcoin’s daily trading volume is over $30 billion. Experts believe that once Bitcoin breaks through the crucial $19,500 level, it could target a move towards the $20,000 resistance level, opening the doors for further gains.
It should be noted that the price of Bitcoin showed positive signals after crossing the important levels of $16,800. The price accelerated again and has continued to show bullish signals until today. Let’s take a look at what the technical indicators currently depict:
- Hourly Moving Average Convergence/Divergence (MACD) – Gaining momentum in an uptrend zone.
- Hourly RSI (Relative Strength Index) for BTC/USD – above 50 level.
- Support levels – $18,000
- Resistance Levels – $18,250, $18,500.
(Data taken from CoinMarketCap.com)
One of the reasons experts are bullish on Bitcoin is that next year, 2024, is the year for Bitcoin’s halving event. The Bitcoin halving event happens every four years, when the rewards given to Bitcoin miners are cut in half (the miner’s payout will be reduced to 3,125 BTC). This event is generally considered positive for the price of Bitcoin, as the halving helps to close the supply. Historically, a halving has been seen as a very good sign to bring momentum to Bitcoin’s price.
Bitcoin Halving History
So, if we look closely at the data, past Bitcoin halving events have been able to create long-term bullish accelerators for the price of Bitcoin. The Bitcoin halving event is directly related to the deflationary trend and squeezes its supply, which helps the BTC price rise even further. Like Bitcoin, a decentralized cryptocurrency, it cannot be printed by governments or any central bank, and thus the total supply of Bitcoin is limited.
Another reason for Bitcoin to rise in 2023 is the US Fed’s interest rate talks, which could help Bitcoin maintain its bullish trajectory and outperform other asset classes.
Moreover, large investors known as “Bitcoin Whales” started hoarding BTC again. According to data from on-chain aggregator Santiment, large Bitcoin whales hold 1,000-10,000 BTC in their wallets, indicating that investors are filling their wallets with a lot of BTC, which could signal a recovery in the Bitcoin price. Bitcoin.
Will Bitcoin crash again in 2023?
(Bear View)
There are investors, corporations, and large institutions who are against Bitcoin and strongly believe that Bitcoin may fall in the near future. They considered this rally not a “bull run” but the main “bull trap”. Veteran global investor Mark Mobius, the billionaire founder of Mobius Capital Partners, has already predicted a major crash in 2022 and said Bitcoin could even fall to the $10,000 range.
Similarly, another maverick investor, Matthew Siegel, head of digital asset research at global investment manager VanEck, is predicting the same, citing higher energy prices and sees Bitcoin falling to $12,000.
Moreover, the prediction of global bank Standard Chartered regarding Bitcoin is very surprising. They predicted that Bitcoin could fall to $5,000 in 2023.
Experts believe that rising interest rates and tight monetary policy will not allow Bitcoin to rise sharply in the near future. As in such an uncertain market, investors will not prefer to invest in or buy risky assets like Bitcoin. And those who own BTC can sell their positions again, creating undue pressure on the markets.
How Should Indian Investors Approach Bitcoin in 2023?
With such varied predictions about Bitcoin, what should be the approach of Indian crypto investors? With such uncertainty around, it is the best time to watch Bitcoin movements carefully rather than taking any action that might lead to serious losses. Even Indian crypto industry experts feel that it is a wait and watch mode for crypto investors and any action should be taken very carefully.
Dileep Seinberg, Founder and CEO of MuffinPay, believes that “Bitcoin’s price action depends on macroeconomic factors, including inflation concerns and interest rate hikes by the US Federal Reserve and other central banks. In addition, diminishing fears of an economic slowdown or recession could also affect Bitcoin prices.”
He strongly feels that Indian investors should be cautious about investing in Bitcoin in 2023 as this year will remain a mixed bag and cryptocurrency investors should not go all guns blazing.
Punit Agarwal, the founder of KoinX, suspects that inflation and recession are the main topics that cryptocurrency investors will need to focus on even in 2023. Agarwal noted, “Indian investors should take a long-term perspective when investing in cryptocurrencies, including Bitcoin. .”
He believes that investors should instead opt for regular Systematic Investment Plans (SIPs) in Bitcoin for long-term gains.
On the contrary, certain market experts have full faith in Bitcoin and expect it to rise again. Raj Karkara, Chief Operating Officer of ZebPay, seems quite bullish on Bitcoin. “Bitcoin’s fundamentals remain solid regardless of market conditions,” he said. He then cited one of the studies by market intelligence firm Glassnodes, which found that close to 60% of bitcoin in circulation had not yet moved in 2022, and that long-term investors were still bullish on Bitcoin.
“Bitcoin could rise again in 2023, provided there are no macroeconomic headwinds.” Karkara says. He also feels that cryptocurrency traders and investors should do extensive research on the fundamentals and technicalities of the asset before making a buying decision. Also, using a systematic investment plan (SIP) approach in Bitcoin can help investors hedge against market volatility.
Bottom line
There are several views and predictions about Bitcoin, some bullish and some bearish. Only time will tell where Bitcoin will go next. Known for its stable nature, Bitcoin carries a great ability to bounce back. Over the past decade, several veteran experts have predicted that the Bitcoin bubble will soon burst. However, the poster boy of cryptocurrency is still admired by many and has helped investors make significant fortunes over time.