When to Expect the New Bitcoin Rally?
According to Mark Yusko, a hedge fund manager, there’s a likelihood of another Bitcoin rally in the second quarter of 2023 up to early 2024. Anticipation will likely trigger the new rally thanks to a halving mechanism that lowers Bitcoin’s block earning by half after four years.
This mechanism has historical significance as being the major driver for crypto rallies, and the next half is expected in early 2024. Halving will propel the coin to $100,000 or beyond. The rally is expected to happen regardless of the unfavorable macroeconomic outlook dominated by high-interest rates and low growth.
Here’s more about when to expect the new Bitcoin rally:
Biggest Factors That Affected Bitcoin Price in 2022
The price of Bitcoin started crashing after reaching an All-Time High (ATH) of about $69,300. However, the prices started tumbling down and reached $48,000 at the start of the year. Prices continued dipping to reach $20,000 which fluctuated throughout most of the months in 2022.
Like other financial assets, various factors affected the price of BTC in 2022. The market is highly correlated to the stock market today. Furthermore, the coin now struggles because of the rise in interest rates to combat inflation by the Federal Reserve.
Apart from inflation, an unstable geopolitical environment significantly impacted the market. This resulted from the energy crisis resulting from the war between Russia and Ukraine, which strained various global economies.
Can the SEC Help Bitcoin Reach 30k in Early 2023?
With the current price of BTC at $16,518.70 at the time of writing this article, reaching 30k would be about a 50% increase in one and a half months. Despite an increase in valuation, the crypto faces network-related issues because of its Proof-of-Work algorithm.
Its mining difficulty increased in October by 3.44%, taking the mining rate to an all-time high of 36.835 trillion hashes. There’s a lot of pressure on minors to create more computational power to achieve the 30k mark by early 2023.
Predictions for Bitcoin by Christmas 2022 are fluctuating. Coin Price Forecast analysts expect the coin price to reach 27k by the end of 2022, while the Changelly Blog predicted 21k in the same period.
Can Trading Help Maximize Your Crypto Profit?
Yes, maximizing profit is possible using the right strategies professionals use. Here are a few options to consider.
Planning Is Key
Creating a crypto trading plan requires minimal effort. You must determine how to react to different situations. Traders must also determine the indicators for use to make decisions. It’s also essential to plan how to handle success after making a sale. Planning will streamline your buying / selling process, for example, in the UK you can buy Bitcoin with PayPal within the app, whereas in the US you can use PayPal, Neteller or even Venmo to buy and sell Bitcoin.
Traders must set a stop loss to avoid losing more than they can afford. A stop loss sets a cap on your trading position. The rule of thumb is to give your crypto trade enough breathing space. You must also set a take profit, the ceiling for a trade. The limit will automatically close a trade at a predetermined target value.
Understand Resistance Levels
The levels are psychological borders for traders. A resistance level is a price at which the asset finds pressure on its way resulting from the appearance of more traders willing to sell at that price. When analyzing charts, consider the resistance levels and common patterns such as head and shoulders pattern when trading crypto.
Avoid relying on emotions to make trading decisions. Fear, conviction, excitement, greed, or overconfidence may make you make poor decisions. Reducing trade size avoids the effects of fear. Understanding market cycles and your emotions is crucial for success while trading.
Will Bitcoin See Another ATH in 2023?
The current Bitcoin predictions reveal that the highest possible price of the coin is likely to be $82731.50 by January 2023 and $103965.92 by December. Its average price is predicted to be about $77319.16. This will be an all-time high compared to the last one in 2022, which was $69,300.
The next Bitcoin rally is expected by early 2024 after the four-year period elapses. Traders can make good profits trading this coin using the right strategy, such as avoiding emotional trading and understanding resistance levels. Bitcoin is expected to reach ATH in 2023 according to predictions by leading analysts.