HomeCryptoWhy Crypto Prices Expected For A Strong Week As Bitcoin Strengthens Above $20,000
Why Crypto Prices Expected For A Strong Week As Bitcoin Strengthens Above $20,000
January 16, 2023
After more than a year in the bear market, with the price of Bitcoin falling from a high of $69,000 to a low of $15,000, there finally seems to be bullish sentiment, with the price of Bitcoin appreciating once again and the rest of the market follows suit.
Ethereum has also managed to recover $15k, and smaller-cap alt coins like Solana and Cardano have managed to make much more significant gains, although they have fallen much more prior to this point.
Bitcoin strengthens above $20,000
Bitcoin price has now strengthened above the $20,000 mark, and has even managed to clear $21,000, which is an extremely bullish mark to clear.
There are many who believe that the market has now bottomed out and that the price should consolidate and appreciate from here.
This is part of the broader macro environment of falling inflation and an increased likelihood of a Fed pivot due to low value risk on assets such as the stock market.
The sellers are exhausted
After about a year and a half in the bear market, many sellers are exhausted and there simply aren’t many people left to sell.
Short-term traders and speculators were punished for their short-sightedness and
According to on-chain analysis, more than 80% of Bitcoin is now held by long-term holders, who are extremely resilient to price volatility. It is thanks to the other 20% that the price fluctuates so much.
Short sellers liquidated pushing the price higher
Short sellers have had a tough time lately, as their bearish bets have been heavily punished.
Many have speculated that the price of Bitcoin should reasonably fall to $11,000 or lower in order to reflect the same magnitude of decline in previous bear markets.
However, many short sellers have become forced buyers, particularly once Bitcoin cleared $18k and $20k, which helped push the price even higher.
For now, it appears that there are not that many significant clusters of short sellers yet to liquidate, although this could change quickly.
Plan B has a new BTC price prediction
Plan B, the anonymous on-chain analyst, recently released some new predictions for the price of Bitcoin, in which he claims that the price of Bitcoin has already bottomed out and will continue to rise until the halvening and beyond.
If Plan B is correct, then now is an extremely bullish time for the markets and Bitcoin has the potential to appreciate by several multiples over the next year and beyond.