Since the beginning of its existence, Bitcoin has been widely criticized for the high volatility and risky nature of its market. However, recent events in the cryptocurrency space seem to counter the aforementioned concerns.
The price of Bitcoin has dropped by 3.8% in the last 24 hours, bringing it to $17,400 at the time of writing. Although 2018 was a difficult year for the majority of the cryptocurrency market, it does not seem like a lack of believers that 2023 will give room for recovery. This was confirmed by a survey conducted by the famous cryptocurrency analysis engine CoinMarketCap.
At the time of the report, the results were overwhelming, with 83.2% of respondents showing a bullish outlook for the coming year in the cryptocurrency market, according to data obtained from Coinpedia on Dec. 15. On the other hand, 16.89% of voters are sensitive to the future market situation in 2023.
Benjamin Cowen, a cryptocurrency analyst who is also the founder of the popular magazine Into the Cryptoverse, recently sent a Bitcoin analysis video to around 800,000 subscribers. In the video, he compared several Bitcoin bear markets.
The Bear Market Cycle Maximum ROI is a useful indicator that can be used to determine the capitulation level of the current cycle in the bear market. Analysts measure current market losses by comparing the return on investment from the peak of the current cycle. The current bear market is on the green line. According to the analyst, if April is considered the peak for BTC, then this wild market continues for 401 days, which is a long time and makes it the second longest BTC market in cryptocurrency history.
The one that lasted from November 2013 to January 2014, a total of 406 days, was the longest. That is, if Bitcoin (BTC) hits a new low in the next five days or so, it will break the record and become the longest wild market in Bitcoin history.
According to Cowen, there are many reasons to believe that there will not be a new earth, but there are also many reasons to believe that there will be. He went on to say that although BTC has reached the bottom, it does not mean that the bear market is going to end.
Cowen thinks that things will start to turn around and turn neutral in 2023 and as we approach the halfway point, we will start to see strong signals. What to expect from BTC this coming weekend?
What Can You Expect From BTC in the Coming Week?
Goldman Sachs believes that the current price of Bitcoin is determined by the breadth of possible future use cases, making it a flexible and solution-seeking problem. The recent BTC price rally is encouraging for market demand. This is especially true now that BTC has recovered from its fall from $20,000 to $15,600 following the FTX crash and is trading at $17,600, slightly lower than its June low. Is it the right time to stock up on Bitcoin? This is what the string data says
Bitcoin prices rose after the Federal Reserve announced a smaller increase than seen in previous meetings and also indicated that further hikes may be in order. However, the royalties lowered as the dollar rallied and the return of risk aversion, leading to a soft feeling among investors.
On Wednesday, the Federal Reserve raised its target federal funds rate by 0.5%, bringing it to a range between 4.25% and 4.5%. The decision was in line with Wall Street expectations.
According to reports, members of the Federal Open Market Committee do not expect a transition from rate hikes to rate cuts until 2024. Bitcoin is currently trading in a bearish direction, although it has broken the important resistance level around $18,150. However, the price of Bitcoin fell below the $18,000 level following the Fed’s announcement that it will raise interest rates.
This indicates that it is possible that the current market trend will continue. BTC is trading at $17,708 at the time of this writing, which represents a drop of around 1% in the last 24 hours.