Bitcoin Could Reach $25,000 By 2023 – Bullish Outlook Supported by Technical & Macro Factors
– Bitcoin (BTC) has the potential to reach $25,000 by March of 2023 based on a combination of technical and macro indicators.
– BTC’s exit from a descending channel range and breaking of three resistance levels with strong volumes shows traders’ conviction about an extended price rally.
– This bullish outlook on BTC is supported by the weakening of the U.S. dollar as a result of expectations that the Federal Reserve will stop raising interest rates.
The crypto market is buzzing with activity as Bitcoin (BTC) shows potential of stretching its ongoing price recovery to $25,000 by March of 2023. This bullish outlook is based on a mix of technical and macro indicators that are currently playing in BTC’s favor.
First, Bitcoin’s potential to hit $25,000 comes from its exit from a prevailing descending channel range. Last week, BTC’s price broke out of the range, accompanying a rise in its trading volumes. This move pushed the price above its resistance confluence, which comprises a psychological price ceiling of $20,000 and its 20-week exponential moving average (20-week EMA; the green wave) near $19,500. Breaking three resistance levels with strong volumes shows traders’ conviction about an extended price rally, and Bitcoin’s next upside target is its 200-week EMA (the yellow wave) at around $25,000 — a 20% rise from current price levels.
Bitcoin’s bullish technical outlook is also supported by the weakening of the U.S. dollar. The two assets have mostly moved inversely to each another since March 2020, and as of Jan. 16, the daily correlation coefficient between BTC and the U.S. dollar is -0.21. This weakening of the dollar is down to expectations that the Federal Reserve will stop raising interest rates as a result of lowering inflation. The dollar’s performance is also showing signs of a potential “death cross”, where the 50-day moving average crosses below the 200-day moving average, which is often seen as a bearish signal.
Overall, Bitcoin’s potential rally to $25,000 is supported by both technical and macro indicators, and could be a sign of further bullish momentum for the cryptocurrency. However, it should be noted that Bitcoin’s price recovery in 2023 has witnessed minimal institutional buying, casting doubt on whether BTC will rally beyond $25,000.