The post Cryptocurrency Market to Get One More Bad News Before 2022 Ends. Here’s What To Expect appeared first on Coinpedia Fintech News
Even though the cryptocurrency market is no longer in a state of utter turmoil, the effects of the FTX crash are still being felt. After failing to surpass the $17,000 resistance level, the price of Bitcoin (BTC) is still in a consolidation phase.
According to a cryptocurrency analyst, Bitcoin could make a significant upward rise in 2023. Altcoin Sherpa, a pseudonymous expert, said that Bitcoin is showing signs of its bear market rise from 2019 when the king cryptocurrency soared from $3,000 to $14,000 in a few months.
“BTC: we saw a massive rally in 2019 after the bottom of the bear market; from $3,000->$14,000. I personally think we’ll see another bear market rally in 2023. Is it going to go as high as 2019 percentage-wise? In my opinion, not close. But I do think we’ll see some strong moves.”
According to the analyst’s chart, Bitcoin might increase to over $38,000, which would represent an increase of almost 130%. Although the analyst believes Bitcoin might experience a bullish run in the coming year, he also warns that BTC may still experience one more capitulation event before it begins to rise.
“Things to note: -Macro environment way different now vs. 2019 -We haven’t seen that final capitulation yet (i.e. $6,000->$3,000 in 2018). If we see that, it could be even more likely this happens -If we do see a strong rally, it’s highly unlikely this is going to be sustainable.”
On-chain data is bullish
Another significant development is the decline in whale interest in Bitcoin. Bitcoin transactions worth $1 million have reached a two-year low, and whales have been particularly uninterested in either hoarding or selling their Bitcoins.
According to Santiment,
“Bitcoin’s ranging prices have a lot to do with declining whale interest. This chart illustrates how closely $BTC and $1M+ valued whale transactions correlate. If prices continue sliding and a spike occurs, this would be a historically #bullish signal.”