After reaching a high of $31,000, Bitcoin (BTC) has corrected down to the $30,500 line, experiencing a key period of consolidation above this significant psychological level for bulls. Despite this correction, experts are optimistic about BTC’s future, suggesting that the current bull run is far from over.
Bitcoin Price Surge Shows No Signs Of Stopping
According to Matrixport researcher Markus Thielen, 2023 is turning out exactly as they had envisioned it, and more Bitcoin gains are to come.
This sentiment is based on a series of predictions made by the research firm, which have proved accurate so far. In December 2022, Matrixport predicted that BTC could reach $29,000 by 2023, based on its inflation model.
At the time, Bitcoin was trading at $16,200, indicating an 80% upside potential. By February 2023, Matrixport upgraded their price target and suggested that Bitcoin could rally towards $45,000 by year-end, with an 83% chance of success.
What’s more, July is historically a strong month for Bitcoin, with prices finishing positive in seven out of the last 10 years and average returns of +11%.
In the past three years, BTC’s returns for July were even higher, with +24%, +20%, and +27% in 2020, 2021, and 2022, respectively. Thielen suggests that this trend indicates a high probability that Bitcoin will be +10-20% higher during the next 30 days, potentially reaching $33,000 to $36,000 by August.
Thielen also notes that Bitcoin tends to move up by 10,000 points, retrace 5,000 points, and then rally another 10,000 points until it reaches its price target.
For example, BTC rallied from nearly $15,000 to $25,000, dropped back to $20,000 due to the US banking crisis, then rallied another 10,000 points to $30,000, and sold off to $25,000 because of the Binance-SEC lawsuit.
However, Thielen believes that Bitcoin is on the way to $35,000, as the expected approval of Bitcoin ETFs will bring more US institutions and retail investors into the space.
Matrixport’s predictions are based on various factors, including the Bitcoin halving cycle, strong rallies during US trading hours, and the July effect, which tends to be a strong month for Bitcoin.
These factors, coupled with the expected approval of Blackrocks’ BTC ETF, could bring more US institutions and retail investors into the cryptocurrency space.
Despite the recent correction, Bitcoin’s trend is still higher, and Matrixport’s price target remains at $45,000 for the end of 2023. The Matrixport BTC Greed & Fear index is trading at 94%, indicating that the trend is still higher, but some consolidation may be necessary before another rally.
At present, the largest cryptocurrency in the market is trading at $30,500, showing a modest decline of 0.5% in the last 24 hours. However, over wider timeframes, BTC has maintained substantial gains, with increases of more than 15% and 18% in the last seven and 14-day periods, respectively.
While BTC’s current price may suggest a possible slowdown, its recent gains indicate that it may continue to exhibit bullish momentum. Alternatively, a significant correction may be necessary to achieve the price targets predicted by Matrixport.
Featured image from Unsplash, chart from TradingView.com