Bitcoin price might hit $48k: Technical indicator hints Bull run 2023

Muhammad Naeem

Blogger

Bitcoin's price and the entire crypto survived the intense fall of 2022. Crypto prices this year have started to stabilize as the Bitcoin Price Chart shows some huge green candles. Ethereum's price like that of other coins has also responded to the bullish market sentiments which have also supported the NFT market, since most of the NFTs are on the Ethereum chain.

The bitcoin price touched a bottom of $15,700 which, according to many experts, could be this cycle’s bottom. Many bitcoin enthusiasts even claim that Bitcoin will never revisit those levels. The Bitcoin price prediction is not in the bulls’ favor always; many bears believe that Bitcoin's price might fall to $12,000 before Bitcoin starts its bullish movement.

Bitcoin Technical Analysis:

If you had asked an expert in 2022 for a BTC prediction for 2023, you might have heard that it might spend months to cross even $20,000. However, Bitcoin's price history tells that it is nefarious for volatilities and here we are with a local high of $24,000 in just the first month of 2023.

Bitcoin Price Analysis Today:

The Bitcoin price analysis today shows that on a smaller time frame, such as 1 hour, Bitcoin is bearish as it breaks below the support of $22,300. Now the local support zone for bitcoin is near the critical support of $20,000. If we do a Bitcoin price analysis for next week, we can see bitcoin going to this support level this week, unless this breakdown is just a fakeout and Bitcoin recovers again above the current resistance-turned-support.

The Bitcoin screeners show positive sentiments and bears are discouraged by the recent price gains. This could be the reason for Bitcoin to reclaim the cycle high this month. This is a minor price correction and the paper hands are selling out their gains for low. The price should start rising again once new buyers enter the market.

Bitcoin price history

January has been in favor of Bitcoin and this month equaled the record of most 1-day green candles in a row. Though the gain is not very significant, it has played its role in discouraging bearish sentiments from the markets and changing the screeners. If we zoom out the Bitcoin chart and look for a long-term direction of Bitcoin and the rest of the market, Bitcoin stands at a very critical level.

The upper support zone is the first line of defense for Bitcoin to save it from sliding downwards. If Bitcoin drops below the lower support zone, it might get trapped in the lower rectangular area for months. If another rally comes to save the day, the bulls might try to break the local resistance which is at the local high of $24,300.

Bitcoin Price and Strength of the US Dollar: Inverse correlation

Bitcoin's price is strongly linked to the strength of the US Dollar as shown in the chart above. The inverse correlation between bitcoin and the US dollar describes the tendency for the two to move in opposite directions. When the value of the US dollar rises, the price of bitcoin tends to fall, and vice versa.

This inverse link can be explained by the fact that bitcoin is frequently regarded as a store of value or as a hedge against inflation and currency depreciation. When the US dollar is strong and its value rises, investors may be less likely to seek sanctuary in bitcoin, causing demand and price to fall.

It is important to note that the inverse link between Bitcoin and US dollar is not always evident or consistent, as there are numerous other factors that can influence both the price of the US dollar and the price of bitcoin.

Bitcoin to $48k: Price Echo Bubble

Bitcoin's price has risen from its low of $3,100 in 2019 to $13,000, which is considered the 0.618 Fibonacci level on the weekly chart. A Fibonacci retracement is a technical analysis method that may be used to identify levels of support and resistance in the price movement of an asset. The 0.618 level is a popular place to look for potential levels of resistance or support in a market.

According to the chart, bitcoin is rising again after hitting a low of $15,700, and it might reach $36,000 if it reclaims the 0.618 Fibonacci level. This is predicated on the premise that bitcoin's price will continue to follow previous price patterns and trends. Furthermore, following the 2019 eco bubble, the price of bitcoin might potentially reach $48,000 in 2023, according to the 0.382 Fibonacci threshold.

Conclusion:

Although technical analysis can be beneficial for spotting market trends, it should not be utilized as the sole consideration in investment decisions because it cannot foretell future market movements. Before making any investment decisions, it is critical to conduct extensive research and analysis because there are several factors that can influence the price of bitcoin, such as economic and political developments, investor sentiment, and regulatory developments.