The price of Bitcoin (BTC) has seen a significant increase of over 70% so far in 2023, with the cryptocurrency being supported by a banking crisis and hopes for the approval of a spot BTC exchange-traded fund (ETF) in the United States. This raises the question of whether Bitcoin’s price will continue to rise for the remainder of the year.
Popular BTC analyst Stockmoney Lizards has suggested that Bitcoin’s ongoing market trend resembles its price action during the 2017 to 2020 period. This similarity suggests that Bitcoin could experience a key breakout moment, leading to a decisive bull run. In 2020, a similar breakout preceded a Bitcoin rally to its record high of $69,000 in November 2021. If history were to repeat itself, the analyst predicts that Bitcoin’s price could climb to the range of $45,000 to $50,000 by the end of 2023.
However, unlike the 2020 price rally, Bitcoin is currently facing challenges due to the tightening policies of the United States Federal Reserve, resulting in lower liquidity in the market. Since reaching its peak in April 2022, when the Federal Reserve’s balance sheet was at its highest, Bitcoin’s price has dropped by 40%. These headwinds from the Federal Reserve could potentially dampen Bitcoin’s performance in the coming months.
On the other hand, Standard Chartered also predicts that Bitcoin will reach $50,000 by the end of the year. Geoff Kendrick, the global head of research and chief strategist at Standard Chartered, believes that increased profitability for Bitcoin miners will reduce their need to sell BTC, leading to a lower supply against potential rising demand. The number of Bitcoin held by miners surged during the Ordinals hype in May 2023 and has since stabilized.
From a technical analysis standpoint, one Bitcoin technical setup suggests a year-end target near $32,000, which is a recent price peak. Bitcoin appears to have entered the breakout stage of a bump-and-run reversal (BARR) Bottom pattern. In the past, this pattern has accurately predicted price movements, as seen in the case of Dogecoin in June 2022. If this pattern plays out as intended, BTC price could increase by another 12.75% by the end of 2023.
It is important to note that this article does not provide investment advice or recommendations. Every investment and trading decision comes with risks, and readers should conduct their own research before making any investment decisions.