With Christmas gone and the new year fast approaching, everyone’s sharing thoughts about Bitcoin’s price point next year. It’s obvious that this year has been one to forget. While looks were good initially, the Russia-Ukraine war changed a lot, and a few negative headlines such as FTX’s demise threw the market in disarray.
It was the fuel doubters needed, with many foretelling the fall of crypto once and for all. What they don’t know is that it will never die. Bitcoin’s price swings may be too much to bear, but a breakout may be coming in 2023.
Volatility Returns
Bitcoin’s volatility returned a day ago in the USA as stocks began trading to yearly closes. In the previous months, it was obvious that volatility came to a relative halt. Bitcoin was stable in the $20,000 range until FTX dropped the ball. Even then, Bitcoin’s reduced price floated around the $17,000 mark, but now it has dropped below and is once again as volatile as ever.
Data from TradingView shows it dropping around 1% when stocks began trading on December 27. It was a move just shy of $150, but significant enough. It came as response to S&P 500’s 0.6% drop, while the NASDAQ Composite Index dropped just shy of 1.5%. The US Dollar responded as well and made up for the ground it lost a few days prior.
According to experts, there’s no bigger risk to the crypto market right now than BNB. Due to the ongoing FUD of its issued, Binance, BNB’s price will be one to watch. It traded over $240 on the day, which is certainly good. It’s what some refer to as a line in the sand in regards to any bull runs, and an important factor in Bitcoin’s long-term price.
Worries About BTC Miners
Bitcoin mining has reduced significantly around the world in line with concerns over energy efficiency. Public Bitcoin miners have all but sold their equipment, and while mining has come to a halt, Bitcoin miners still make the headlines.
Some experts believe that miner problems that were previously dismissed are a potential source of the price action. Even if miners sell their reserves to an open market, it would be just a tiny drop in the supply vs. demand ocean. It obviously has an impact on Bitcoin’s swinging price, which could go up to 15% in 2023 if experts are to be believed.
For this to happen, it must jump over one obstacle. That’s going over the 55-day SMA which is around $17,300. If bulls keep it together and no one sells in a panic, a bullish rally can begin, targeting the low $19,000s. That might come as soon as the end of this week or on New Year’s Eve.
Should that happen, the rally could stretch well into 2023. This year’s 52nd week is key for its onward movement, and may define what we see next year. Here’s hoping it’s a positive sign.