Bitcoin (BTC) price action over the past six days has, as always, generated many ideas about its future direction. Also, as always, opinions were polarized. While two famous names are weighed in this environment, analysts share their BTC price predictions.
Jim Cramer and Peter Schiff call to sell Bitcoin
Prominent crypto foes like Peter Schiff and Jim Cramer urged investors to once again say goodbye to ‘magic internet coins’. Oddly enough, one of them managed to make fun of the other meanwhile. Thus, reacting to Cramer’s call, Schiff at times hinted that the CNBC host’s predictions were wrong, saying that he himself gave the right advice.
Every once in a while he gets something right.
— Peter Schiff (@PeterSchiff) January 20, 2023
The other side did the real thing and let the money speak for itself. Thus, according to LookIntoBitcoin, Bitcoin wallets of various sizes are increasing in size every day. For example, the number of addresses holding more than 0.01 BTC has already reached an all-time high of 11.43 million.
Analyst predicts BTC price will chase gold
Bitcoin’s trading range is ‘well defined’ on exchanges but there is more breakout area to copy gold. BTC rallied at the Wall Street open, in line with US stocks, as an explosive third week of January trading came to an end. Despite doubts about the underlying strength of the rally, Bitcoin continued to avoid major corrections. Also, exchange order book analysis revealed $23,000 as the next major resistance zone to break.
“We see the lack of BTC liquidity below $18,000 and above $23,000 as a lack of sentiment for these levels at the moment,” wrote on-chain tracking resource Material Indicators in a comment on the Binance order book setup. Also, “Nothing can change sentiment like price moves through support or resistance. But for now, the trading range is well defined,” he added.
BTC order book data (Binance) / Source: Material IndicatorsAn accompanying chart also revealed significant price support just above the psychologically important $20,000 mark. In terms of short-term targets, popular trader Crypto Ed was hoping for a trip to $21,500 before reversing with a bearish target of $19,800. The area around $21,400 was equally important to fellow trader CJ, who told his Twitter followers this would be a good place to ‘tag long positions’.
Bitcoin should close the gap with gold, according to analyst
Others, who distanced themselves, are focusing on the continued impressive moves of safe-haven gold, which hit a new nine-month high on Jan. In a Twitter discussion, analysts point to a potentially ongoing catch-up game between gold and Bitcoin, which researcher and data analyst James V. Straten claims to be ‘mirror images’ of each other in 2022.
“I bet BTC will close this gap soon,” Straten said when discussing the effects of Federal Reserve policy on the market. Also, Straten added that BTC “traces the whole FTX crash and is nearing the end of the narrative for DCG,” citing ongoing problems for crypto finance conglomerate Digital Currency Group.
BTC – Gold 1-day line chart / Source: TradingViewBTC price could be parabolic if this assumption is true
There are different factors that define Bitcoin’s price rise, and while most of them may be fundamental, there are some unique on-chain indicators that can support assumptions about how the leading cryptocurrency might approach an additional flow of funds across both individual and institutional buyers. According to data from crypto analytics platform Glassnode, seven-day Moving Average (MA) data shows that the number of Bitcoin addresses in loss has reached an eight-month low of 14,515,726,077.
https://twitter.com/glassnodealerts/status/1616409111834279938
What this means is that more Bitcoin addresses are starting to see profitability in their holdings as the current price is above the average entry price over the defined monthly period. In this case, these investors or buyers tend to find a good entry when the BTC price corrects slightly. If this assumption is correct, it could be the start of a new sustainable run for BTC.
Graph of rising price momentum
There are a number of ambitious predictions about Bitcoin’s price this year. While some of these estimates are conservative, such as Ben Armstrong’s estimate of $25,000 to $30,000, there are others that are currently overly ambitious.
As you follow on Kriptokoin.com, Bitcoin reached the ATH level in November 2021. However, it has now suffered a massive 69.36% drop from its peak. Cryptocurrency has many upward growth trends. However, current headwinds will need to be overcome first, including the crisis that shook Digital Currency Group, whose subsidiary Genesis Global recently filed for bankruptcy.
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