The price of Bitcoin in 2023 is mirroring a pattern from 2015 in which the price of BTC went from $350 to $700 in seven months.
By iProfessional
08/04/2023 – 21,59hs
Bitcoin could rally towards the u$s50,000 and 2023based on a historical price pattern highlighted by the popular market analyst known as “Mags.”
The chart pattern highlights the similarities between Bitcoin’s current price trends and those recorded after the end of the 2013-2015 bear market.
That includes Bitcoin’s consolidation in the $200-$300 range between January 2015 and August 2015, which looks identical to its consolidation in the $18,500-$25,000 range after the supposed completion of its 2021-2022 bear market.
The price of BTC broke above the $16,000-$25,000 range in March 2023, leading Mags to highlight its resemblance to breaking above the $200-$300 range in October 2015, Cointelegraph noted.
Since this led to a rally towards $700 in June 2016, the analyst sees the scenario potentially repeating itself in 2023, with the price of BTC doubling to $50,000.
“Being bearish here, when the price of Bitcoin is around $28,000, is like being bearish at $350,” Mags added.
The liquidity crisis could ruin the party for the price of Bitcoin
The bullish case for Bitcoin comes amid expectations that the US Federal Reserve will slow the pace of interest rate hikes.
Given that this led to a rally towards $700 in June 2016, the analyst sees the scenario potentially repeating itself in 2023.
Due to expectations of lower rates, the yield on the 10-year US Treasury note has fallen. This, in turn, has boosted investor appetite for risky assets, such as Bitcoin and gold.
In addition, lower yields have also dampened demand for US dollars, which will lose 1.33% in 2023 against a basket of major foreign currencies. Since the value of Bitcoin is largely denominated in dollars, this means higher prices for BTC/USD.
However, Bloomberg analyst Mike McGlone has warned of a potential bull trap in the Bitcoin market due to the growing shortage of liquidity. “It may be illogical to expect the stock market, crude oil, copper and Bloomberg Galaxy Crypto Index (BGCI) to sustain recent rebounds with yoy measures of money supply and commercial bank deposits falling around 2% “.
