Even though the cryptocurrency market is no longer in a state of utter turmoil, the effects of the FTX crash are still being felt. After failing to surpass the $17,000 resistance level, the price of Bitcoin (BTC) is still in a consolidation phase.
According to a cryptocurrency analyst, Bitcoin could make a significant upward rise in 2023. Altcoin Sherpa, a pseudonymous expert, said that Bitcoin is showing signs of its bear market rise from 2019 when the king cryptocurrency soared from $3,000 to $14,000 in a few months.
“BTC: we saw a massive rally in 2019 after the bottom of the bear market; from $3,000->$14,000. I personally think we’ll see another bear market rally in 2023. Is it going to go as high as 2019 percentage-wise? In my opinion, not close. But I do think we’ll see some strong moves.”
According to the analyst’s chart, Bitcoin might increase to over $38,000, which would represent an increase of almost 130%. Although the analyst believes Bitcoin might experience a bullish run in the coming year, he also warns that BTC may still experience one more capitulation event before it begins to rise.
“Things to note: -Macro environment way different now vs. 2019 -We haven’t seen that final capitulation yet (i.e. $6,000->$3,000 in 2018). If we see that, it could be even more likely this happens -If we do see a strong rally, it’s highly unlikely this is going to be sustainable.”
On-chain data is bullish
Another significant development is the decline in whale interest in Bitcoin. Bitcoin transactions worth $1 million have reached a two-year low, and whales have been particularly uninterested in either hoarding or selling their Bitcoins.
According to Santiment,
“Bitcoin’s ranging prices have a lot to do with declining whale interest. This chart illustrates how closely $BTC and $1M+ valued whale transactions correlate. If prices continue sliding and a spike occurs, this would be a historically #bullish signal.”