Crypto News – Since Bitcoin is still 60% below its all-time high from November 2021, many traders are concerned that the price of BTC will continue to decline in the near future.
Will the Bitcoin Price See a Massive Drop Again in 2023?
Viewing the price chart for this year reveals that Bitcoin is still in a positive reversal. After bottoming out at roughly $16,800 in November 2022, the price of bitcoin has increased by 70%, defying expectations of rate increases and riding the rising optimism surrounding the approval of exchange-traded funds.
But in recent months, Bitcoin bulls have been unable to keep the price of BTC over $30,000. Therefore, many traders are unsure if the price of Bitcoin will decline once more in the upcoming months because the bullish halving is still more than 200 days away.
What Does Fibonacci Fractal Say About Bitcoin Price?
Technically speaking, the price of Bitcoin has stabilized around the 0.236 Fib line of its Fibonacci retracement graph, which was drawn from the swing high ($69,000) of the market to the swing low ($15,900) of the local market. This flat BTC price activity resembles what was seen during the 2018 BTC price fall quite a bit.
Prior to falling toward $3,000 in December of last year, the BTC/USD pair maintained stability around its 0.236 Fib line at about $6,790. The $3,000 level fell at the same time as the multiyear ascending trendline support that is now designated as bear market support in the preceding chart.
With a price flatlining at the 0.236 Fib line, Bitcoin is already halfway through repeating 2018 at this point. In the event that this level is broken, the next significant support level for the price of BTC, which is down 17.75% from current levels, is $21,500.
There is a Negative Correlation Between DXY and Bitcoin
The U.S. Dollar Index (DXY), which gauges the strength of the dollar against a pool of the most valuable foreign currencies, has meanwhile risen to its highest level since November 2022. The graph below illustrates how the index and Bitcoin have had a negative correlation during 2023.
Following the US Federal Reserve’s rate decision on September 20, the dollar has gained more ground, and the DXY is currently painting its 11th consecutive green weekly candle. In other words, if the dollar keeps rising after the DXY golden cross, Bitcoin’s upside potential might be constrained.
What Do Analysts Think About the Bitcoin Price?
Where the price of BTC might go in the coming months is a subject of disagreement among Bitcoin analysts. Skew, a well-known trader, claims that the BTC price can reach $30,000 by October due to thin ask liquidity near $27,000, which could result in a breakout.
On the basis of the pre-halving fractal displayed below, a fellow analyst, Rekt Capital, does not rule out a price decline toward $18,000.
History suggests that the next 140 days will be crucial for dollar-cost-averaging in preparation for the Post-Halving parabolic rally. If Bitcoin is going to retrace from (the current price levels), it will most likely be during this current 140-day period.
Rekt Capital
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