The cryptocurrency industry ended 2023 on a positive note, with a significant increase in market valuation. Bitcoin, the leading cryptocurrency, saw a 108% increase in its price, indicating a rise in adoption and interest from investors. This is also reflected in the success of many altcoins, which made their investors rich by multiple folds.
The upcoming altseason is eagerly awaited by the market, as it is predicted to have a major impact on the crypto industry this year. Bitcoin’s dominance has also seen a significant rise over the past year, currently standing at 51.9%. With multiple events lined up for this financial year, the industry is on track to reach new milestones and enter a new phase.
Bitcoin Analysis:
After a strong performance in the previous year, the price of Bitcoin started 2023 on a neutral trend, trading sideways for a brief period. While there were significant fluctuations after the approval of a Spot ETF, the market ultimately displayed a bearish influence. This resulted in a return of +0.73% for the BTC price at the end of the month, marking it as a neutral month.
However, the upcoming Bitcoin halving, scheduled for this year, is expected to have a major impact on the industry. It is predicted to push the BTC price to a new all-time high of $69,186.30, surpassing its previous record in November 2021. Currently, the BTC price is trading in a rounding bottom pattern, and if market sentiments remain positive, it is expected to experience a breakout rally in Q3, reaching a price of $58,000.
Technical indicators also suggest a bullish trend, with MACD showing a rise in the green histogram and a bullish curve in the average. The Cross EMA 50/200-day has also been a strong support for the Bitcoin price for the past six months, indicating a potential for the price to reach $100,000 by the end of the year.
Ethereum Analysis:
Altcoins struggled to gain momentum in the first month of 2023, and Ethereum, the leader among them, saw a modest increase of less than $65 (+5%) in its price. However, the ETH price has formed a symmetric triangle pattern and is currently testing its resistance level, with an unpredictable outcome.
Similar to Bitcoin, the MACD indicator for Ethereum also shows a decline in the green histogram, indicating an increase in selling pressure. The average also suggests a possible bearish convergence, with the lines and trading very close to each other.
The primary goal for Ethereum this year is to reclaim the $3,500 mark, and with increasing market volatility and the potential for an altcoin season, the ETH price is expected to experience significant price action in the coming months.
Bullrun 2024 Prediction:
The future of the industry is influenced by multiple factors, some of which have a significant impact on the market as a whole, while others are specific to certain tokens. The upcoming U.S. Presidential election and the long-term effects of the Spot Bitcoin ETF are two major factors predicted to shape the industry’s future.
The U.S. Presidential election is expected to have a major impact on the industry, as it could potentially shape the future of the financial system and, in turn, affect the crypto market. Similarly, the approval of a Bitcoin Spot ETF by the SEC has already had a positive impact on the industry, with Ethereum Classic recording the highest gains. In the long run, the ETF is expected to have a major influence on Bitcoin’s price, as the market continues to adopt this new technology.
Conclusion:
The previous bull run saw massive price action in the crypto industry, and the same is predicted for this time around. While both internal and external factors play a role in the market’s price movement, there has been a significant increase in adoption and liquidity in the market. With Bitcoin’s target set at $100,000 and Ethereum’s at $3,500, this could potentially result in returns of 112% and 101%, respectively, by the end of the year.
Note:
This article is for informational and educational purposes only and does not provide any trading or investing advice. It is crucial to do thorough research before making any investments, as the crypto industry is highly volatile.
