The cryptocurrency market is still feeling the after-effects of the FTX crash, making it impossible to break the $17,000 barrier. Bitcoin (BTC) Price is currently in a consolidation phase, and a cryptocurrency analyst says that we could see a substantial rise in 2023.
Altcoin Sherpa, a pseudonymous expert, believes that Bitcoin is showing signs of entering a bear market since it’s rally in 2019, when it soared from $3,000 to $14,000 in a few months. According to their predictions, Bitcoin’s price could rise to more than $38,000 in the coming year, a 130% increase. Although the analyst believes BTC could be experiencing a bull market in the near future, they warn that it may still experience one capitulation event before it begins to rise.
“BTC – We saw a massive rally in 2019 after the bottom of the bear market; from $3,000->$14,000. Personally, I think we will see another bear market rally in 2023. Is it going to go as high as the 2019 percentage? In my opinion, it’s not close. But I do think we will see some strong moves.”
On-chain data is also looking bullish, as the whales show waning interest in Bitcoin. Transactions worth $1 million have now reached a two-year low, and the whales have not been actively trading or selling their Bitcoins. Santiment suggests that if prices continue to drop and there is a spike, this could be a historically bullish sign.
“Bitcoin’s fluctuating prices have a lot to do with declining interest in whales. This graph illustrates how closely whale transactions valued at $BTC and $1M+ are correlated. If prices continue to fall and spike occurs, this would be a historically bullish sign.”
Overall, Bitcoin and the cryptocurrency market could go through more losses before the end of 2022, with a potential drop of 50-70% for altcoins. Even so, investors should be ready for a possible strong rally in 2023. But, as the analyst warns, it is unlikely for the rally to be sustained.