As 2023 draws to a close, Bitcoin (BTC) displays positive indicators across its charts, trying to suppress the significant price threshold of $45,000. This leaves cryptocurrency traders and investors pondering the potential price ranges it might reach in the upcoming year.
Despite lingering below its annual peak of $44,000 and still far away from its all-time high of $67,000, the flagship crypto displays indications of recovery.
Dominance until the halving?
Suppose the historical indicators can tell us something. In that case, cycles occur in the market, and it is essential to recognize them to know whether to buy, sell, or hold, depending on the situation.
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It appears that a historical recurrence is underway wherein there is a possibility of reaching the peak of Bitcoin dominance before the imminent BTC halving event, as crypto analyst Michaël van de Poppe highlighted in his X post on December 27.
“Likely, history is repeating itself, and we’re peaking with the Bitcoin dominance prior to the Bitcoin halving. That means the bull market on Altcoins has started, and Ethereum will take over from here.”
Parallel channel dictating Bitcoin price
In the context of the 4-hour chart, Bitcoin is currently in a consolidation phase within a parallel channel, emphasizing the crucial support level at $42,400.
Should Bitcoin experience a sustained decline below this level, there is a potential for a subsequent movement towards $40,700. Conversely, recovering from the current support level may pave the way for upward momentum, targeting a potential rise to $44,400, per a post from crypto expert Ali Martinez on December 26.
MicroStrategy driving up BTC price
MicroStrategy’s recent acquisition of $615 million worth of Bitcoin has generated considerable optimism and excitement within the trading community.
With a current holding surpassing $8 billion in the leading cryptocurrency, the company’s recent purchases and favorable developments have contributed to a bullish trend in the market, according to the cryptocurrency analytics platform Santiment post on December 28.
Simultaneously, the artificial intelligence (AI) algorithms employed by the cryptocurrency analytics and monitoring platform CoinCodex indicate potential ongoing growth for Bitcoin in the coming months. Projections set its price at $44,728 for January 1, 2024, with expectations of progressing towards $82,469 by December 30, 2024.
Bitcoin price analysis
At the time of press, BTC is traded at $42,952, exhibiting a 0.72% rise on its daily chart. Furthermore, it has seen a -1.73 % decrease over the past week and has garnered a gain of 16.24% in the last month, contributing to an overall upward movement of 158.05% over the past year.
The importance of institutional players in the Bitcoin price is highlighted by the involvement of MicroStrategy, as can be seen from the historical movements of BTC price after news of the acquisition was revealed to the public.
This can be a sign of things to come; with the potential approval of spot Bitcoin ETFs on January 10, financial institutions could propel this asset’s price towards the highs it hasn’t experienced before.
However, it all remains to be seen, as for now speculations are the main drivers of BTC’s price, and as they die down, so does the price.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
