The post Is Bitcoin Price Doomed to Consolidate in 2023? Find Out Why Experts Say Yes! appeared first on Coinpedia Fintech News
Despite the Bitcoin meltdown of 2022, many industry insiders are confident in Bitcoin’s long-term prospects. In January 2023, Bitcoin experienced a 40% increase and is expected to reach a new all-time high. Experts in the cryptocurrency market see the ban on crypto ads during the National Football League’s (NFL) Super Bowl and the increase in US inflation as temporary hiccups on the way to more bullish momentum.
During the recent upswing, many potential cryptocurrencies reached their all-time high, with Bitcoin reaching $69k and others experiencing smaller but still impressive gains. Similarly, these alternative cryptocurrencies saw significant price declines after the Bitcoin crisis of 2022. The price of Bitcoin is gaining steam in 2023, with some crypto investors and analysts believing it can reach a new all-time high in the coming months.
Popular crypto analyst Benjamin Cowen suggests that Bitcoin is expected to remain in a tight trading range for the majority of 2023. Cowen uses the MVRV Z-score indicator, which measures the degree to which an asset’s realized value exceeds its market value. According to Cowen, the historical movements of the on-chain indicator suggest that Bitcoin might consolidate in a range for at least another four years until 2024 before a prolonged bull market surge.
Cowen predicts that this year will be a recovery year for Bitcoin, with prices moving up and down equally. He expects the MVRV Z-score score to rise above the zero line again and then fall below it. Cowen believes that the year leading up to the halving event, in which miners’ Bitcoin payouts are slashed in half, will see the MVRV Z-score and the price of Bitcoin explode following a year of recovery. He predicts that the years following the next halving in 2024 will experience a persistent upswing in the MVRV Z-score.
Overall, it is essential to conduct thorough research before investing in crypto assets, as the market currently experiences both gloomy and optimistic analyses.