Bitcoin Analysis – The Year Has Closed & Predictions Remain Intact
A Booming Market
Well, we are officially done with 2023, and Bitcoin closed the year pretty much in line with my expectations. During June, I plotted a graph indicating my expectations regarding the annual close for BTC. I extrapolated and plotted a green box, which I said Bitcoin was likely to reach the top of by the 31st of December. Furthermore, I plotted a second box and suggested a break into this box would indicate an overly bullish market.
As mentioned, I believe that we are likely to see Bitcoin trade within this green rectangle for the remainder of the year. If things go well, we could pierce that second rectangle.
The abovementioned quotation is taken from the article I published in June of this year, as is the graph below. The graph that follows is a current graph and reveals how Bitcoin remained in line with my expectations. There was a brief flash crash, but that too was given as a strong possibility.
The following excerpt is also taken from June’s article, “Bitcoin Fever Kicking In – Analysis & Retrospection”. It points to the possibility of a correction, and the tremendous buying opportunity it would create. I would encourage readers to peruse this article, as it is a prime example of how technical analysis, together with macroeconomics and emotional intelligence can aid you in your trading endeavors.
That being said, a sudden correction could also provide extremely lucrative buying opportunities.
Bitcoin managed to close the year at approximately $42.2K and has since surged past $45K. What I want to see now is a daily close above the $45K level, and even better, a weekly close above $45K. Certain alts have experienced a significant correction over the past week, especially Solana-based projects. However, many are once again surging back to previous levels and are likely to push higher as Solana looks to regain $120.
This is how a bull market plays out… it’s a case of 10 steps forward, and 3 steps back. If you get shaken out during the three steps back, chances are you shouldn’t be in this market. It’s funny, many get shaken out during bull market corrections, only to re-enter the market at higher levels. Furthermore, they then choose to hold their ground when it comes time to exit the market.
Doing the right thing at the right time is imperative when it comes to financial markets. It’s as simple as that. However, in practice, it can get a little tricky. Much depends on an accurate assessment of the market.
Final Thoughts
Bitcoin remains incredibly bullish and continues to move in conjunction with its previous cyclical behavior. During the previous cycle, we unfortunately had to endure the China mining ban which managed to do significant damage, collapsing the Bitcoin price by more than 50% from its local top. What lies in store for 2024, that’s the question now. Anyway, catch you in the next one!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
