After a long downtrend, Bitcoin has started to perform extremely well in 2023, with several on-chain indicators reflecting strong signs of support. BTC/USD has broken the resistance of $30K, approaching 52-week high after the downtrend in the last two years. The strong crypto market performance in 2023 suggests a robust recovery from the bear market. However, in the last few days, BTC has failed to hold a $30K level. Does it suggest the bear market is behind us? At least the technical indicators suggest this view for the long term.
Experts also find an increased correlation between gold and BTC prices. Based on 30 days and 90 days performance, the two assets are strongly positive, especially after the US banking crisis a few weeks ago. It suggests that Bitcoin can be an alternative to gold in the long future.
The Contribution of Long-Term and Short-Term Holders of Bitcoin
The chart suggests an accumulation phase before the FTX liquidity crisis, and long-term holders were investing at that time, which will work as strong support. However, after the liquidity crisis, short-term holders increase their stakes expecting an upward movement so that Ethereum will book their profit. Bitcoin may touch the nearest support level, but that does not suggest another bearish phase because long-term holders are contributing well to the rising graph of Bitcoin price. Overall the performance is surprisingly consistent even after rising more than 50% in the last few months.
At the time of writing this post, the price of Bitcoin is trading around $29K, which suggests a strong momentum in the short term. After hitting resistance around $30K, it is consolidating in the next few days.
The strong support will be around $27K, which will be an ideal time to invest in the long term as per BTC prediction. On the other hand, ETH is active, so it will provide support if Bitcoin touches that level. You should invest for the next few months expecting a strong rise in the bitcoins graph.
The strong weekly performance in the first week of January and the second week of March suggest a strong long-term momentum for BTC USD. Indeed, there is a possibility of touching the $27K level. Still, it will continue the long-term momentum as candlesticks are forming in the upper Bollinger Bands and other technical indicators such as RSI and MACD are bullish.
After rising more than 60%, it may consolidate for a few months, but that does not suggest bearish sentiment. Based on the Bitcoin price predictions, BTC price is expected to cross the level of $50K in 2025 with an upper range around $86K, but it will cross the level of $100K in 2029, and in 2030 it will cross $150K that suggests a strong upside momentum in next five years.