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On Wednesday, bitcoin rose above US$24,000 amid market sell-offs and worries over the economy’s health.
The current crash has caused many to worry about the future of Bitcoin and the cryptocurrency market in general. However, some experts believe the crypto market will bounce back from the current crash in the next few months. Others think that investor wariness is going to persist in the near-short term. The current market conditions are a major factor influencing when Bitcoin will return to US$30,000. Investor confidence has been shaken in recent weeks by a series of crashes in global stock markets. Bitcoin is struggling to hold onto the US$25,000 level. If Bitcoin breaks below the recent low of around US$17,500, there isn’t much support until the US$14,500 level.
The US$30,000 level is key for Bitcoin to see a continuation of the uptrend. The cryptocurrency would need to close above this level in the next few days or weeks for the bulls to gain traction. The Relative Strength Index (RSI) of Bitcoin is currently on a gradual incline, rising from the bearish zone after being stuck in it since June 17.
After hitting the oversold zone, the RSI has already recovered by more than 50% and is currently lingering around the neutral zone at the 50.0 mark. The last time growth as such was observed was between January to March this year, when BTC rose from the OS zone to hit the highs in the bullish zone. This took Bitcoin 66 days to achieve back then.
Why is Bitcoin highly volatile?
There is a reason why Bitcoin is more volatile than the rest of the investment assets. Unlike traditional assets, most cryptocurrencies, including Bitcoin have no underlying asset. Their value does not depend on how well the business is performing, or how advanced the company’s innovations are. The value of Bitcoin will rise and fall, even if investors would not like that. This indicates that the performance of the crypto is purely dependent on speculation about how the investors think the market will perform. As a result of this feature, Bitcoin has faced wild swings, even within a short span of 24 hours. Several other incidents cause the Bitcoin price to dive.
Predictions for 2023 and 2024
If everything goes the way it is predicted, BTC will start in 2023 with a price of US$50,000. The predictions also show that the cost of the coin will reach almost US$65,000 by the end of the year’s second quarter. Furthermore, it is expected that BTC will finish in 2023 with a price of US$79,538. The increase of almost 93% in the value (compared to 2022) shows that if the growing trend continues, BTC will be able to reach the predicted price of US$126,127 by the end of 2025.
If the BTC has a successful 2023, it should start in 2024 at US$79,538 and only continue to grow from there. It is expected that the mid-year value of BTC will reach US$87,354, so a single coin should be worth over US$100,000 by the end of 2024. This would be a huge growth compared to the value of BTC in 2022.
Bitcoin is Positive for a Future Surge
BTC’s upward trend continued through the entire week, nevertheless, investors are hawkish about its market movements. The coin is trending in recent weeks, but the current surge might also be the result of the Biden government’s executive order initiating methods to enhance crypto adoption. But as crypto analysts continue to expect a massive Bitcoin price hike shortly, key indicators have spoken up. They predict that if Bitcoin fails to break the US$47,000, it might again dive back into a crypto slumber and would eventually, and finally, lose its market dominance.
As more companies continue to adopt BTC as a method of payment, its value is expected to stabilize. With this expanded room for Bitcoin trading, the market scope is increasing for investors and traders, and other governments, to explore the crypto domain for investments in the long run.
For now, Bitcoin is set for upcoming surges. But the market is still volatile. A price hike does not bring stability to the market. Hence, before investing in Bitcoin, investors should make sure that they are ready for the volatility and mentally prepared to face losses.
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