Bitcoin Price Prediction as BTC Flirts With Fresh Breakout Towards $25,500
Join Our Telegram channel to stay up to date on breaking news coverage
Bitcoin has pulled a little lower on Sunday, with the world’s largest cryptocurrency by market capitalization last changing hands just under $24,500, down about 1.5% on the day. That means Bitcoin has now pulled about 4.0% lower versus the weekly highs it printed on Saturday in the mid-$23,000s.
Profit-taking is being cited as the main driver of Sunday’s drop, though reports that international payments processor SWIFT is to block USD transactions to Binance that are below $100,000 might also be weighing. This move by SWIFT it expected to make it far more difficult for retail investors to buy cryptocurrency on the world’s most widely used exchange, as it removes an important fiat-to-crypto on-ramp.
Nonetheless, Bitcoin is still on course to close out the week more than 7.0% higher, taking this month’s gains to more than 35%. That means January is on course to be Bitcoin’s best since October 2021, even though there are still nine more days to go.
“Charts Screaming Bottom”
Unsurprisingly, the latest Bitcoin rally has generated plenty of excitement and debate. Many bears continue to view the macroeconomic backdrop (Fed still hiking interest rates as the US heads towards a likely recession) as not having sufficiently improved to warrant the recent rally.
Other disagree – the rapid ongoing drop in US inflationary pressures (as per recent CPI, PPI and wage growth data) suggests that the Fed will soon (i.e. in late 2023/2024) have room to begin easing interest rates to support the struggling economy, they argue. Bond markets certainly seem to believe in this narrative, with US yields having fallen significantly in recent weeks – a trend that is normally good for crypto.
$BTC printed a rare weekly RSI bullish divergence. Never happened in $BTC history, a once in a life opportunity. Technicals were there, charts were screaming bottom but as usual majority was in full bear mode.
— Wolf 🐺 (@IamCryptoWolf) January 21, 2023
Plenty of technical and on-chain indicators also suggest that the bottom might be in. Technical analysts have noted that Bitcoin recently printed a rare bullish divergence of the weekly Relative Strength Index (RSI). A bullish divergence in the RSI happens when the RSI drops into oversold as prices print a bottom. Prices then hit a new bottom (perhaps a few weeks later), but the RSI prints a higher lower.
Others have cited factors such as Bitcoin’s recent big push to the north of its 200-Day Moving Average and Realized Price as key signs of a longer-term momentum shift. Bitcoin also appears to be following exactly in the footsteps of a multi-year market cycle that has been in play since 2015.
$BTC #Bitcoin2015-2017 bull market: 1064 days2017-2018 bear market: 364 days
2018-2021 bull market: 1064 days2021-*current* market low: 364 days
Days left until the top if we just carbon copy the cycle timeframe again: 1001 days pic.twitter.com/KoNZxJRuy5
— HornHairs 🌊 (@CryptoHornHairs) January 12, 2023
Where Next for BTC?
Bitcoin’s impressive breakout above the $21,500 resistance level (which is now a support area) earlier this week, despite Bitcoin’s 14-Day RSI remaining in highly overbought territory, suggests that bullish appetite remains strong. Traders are now waiting to see where Bitcoin can repeat a similar breakout to the north of the $22,700 resistance area. While prices have temporarily pushed above this level in recent days, a sustained push has not yet been accomplished.
US data out next week (flash PMIs for January and December Core PCE inflation figures) could further bolster expectations for Fed easing in late 2023/early 2024, thus providing further macro headwinds for crypto. A sustained pushback above $23,000 would open the door to a rapid test of the next major resistance area around $25,500.
Altcoins to Consider
Cryptocurrency markets have been performing well since the start of 2023, but the longer-term bear market remains very much still in play. Investors might still want to consider diversifying their holdings with the discounted presale tokens of some promising, up-and-coming crypto projects. Here is a list of a few that analysts at InsideBitcoins think have the potential to perform well.
FightOut (FGHT) – Presale on Now
The young move-to-earn crypto niche has shown a lot of promise, but early success stories like STEPN have significant limitations that have, so far, prevented them from conquering the mainstream. FightOut, which touts itself as the future of move-to-earn, wants to change that in 2023. FightOut is a brand new web3 fitness application and gym chain that rewards its users for working out, completing challenges and competing within a first-of-its-kind fitness metaverse.
While existing M2E applications such as STEPN only track steps and require expensive non-fungible token (NFT) buy-ins to take part, FightOut takes a more holistic approach to tracking and rewarding its users for their exercise and activity, and doesn’t require any expensive buy-ins to take part. FightOut seeks to combine the physical and web3 worlds.
The project aims to eventually acquire gyms across all of the world’s major cities, whilst simultaneously promoting an integrated web3 fitness experience. At the center of FightOut’s digital ecosystem will be its smartphone application which, according to FightOut’s whitepaper, is scheduled for launch in Q2 2023.
The FightOut app will harness smartphone and wearable technology to measure and track physical performance. The app will have its own in-house tokenized economy, where users can earn rewards for completing M2E tasks, and can mint their own soul-bound token avatar, through which the user will be able to interact with the FightOut metaverse.
FGHT is the token that powers the FightOut metaverse ecosystem. Users will pay to enter competitions and leagues with FGHT, and winning will be paid out in FGHT.
FGHT can also be used in peer-to-peer fitness wagers. FightOut’s FGHT tokens are currently selling for 60.06 per 1 USDT, and interested investors are encouraged to move fast to secure their tokens, with the pre-sale having already raised nearly $3.2 million in just a few weeks. FGHT is the token that will power the FightOut crypto ecosystem.
Visit FightOut Now
Calvaria (RIA) – Pre-sale Nearly Over
RIA, the token that will power afterlife fantasy-themed NFT battle card game Calvaria, is also currently in presale. The play-to-earn (P2E) crypto gaming start-up has raised close to $3.0 million in just a few months since the launch of its pre-sale. Only around 7% of its tokens remain up for grabs.
Calvaria seeks to bring crypto gaming into the mainstream by tapping into a huge, existing market – the market for physical battle card games (think viral sensations of the past like Pokemon and Yu-Gi-Oh). And with the crypto gaming space expected to grow from $4.6 billion in size in 2022 to $65.7 billion in size by 2027, according to an analysis by Markets and Markets, there is plenty of room for massive growth. Calvaria is set to launch its headline fantasy-themed card game “Duels of Eternity” in Q2 2023.
Visit Calvaria here
C+Charge (CCHG) – Presale Now On
The carbon credit industry is projected to be worth $2.4 trillion by 2027. Democratizing access to accrue these benefits is going to massive business in the years ahead and this is something crypto start-up C+Charge hopes to achieve. C+Charge is currently building a blockchain-based Peer-to-Peer (P2P) payment system for EV charging stations that will allow the drivers of electric vehicles (EVs) to earn carbon credits.
C+Charge aims to boost the role of carbon credits as a key incentive for the adoption of EVs. At present, large manufacturers of EVs like Tesla earn millions from selling carbon credits to polluters. C+Charge wants to democratize the carbon credit market by allowing more of these rewards to find themselves in the hands of the EV owners, rather than just the big businesses.
C+Charge has just started its pre-sale of the CCHG token that its platform will use to pay at EV charging stations. Tokens are currently selling for $0.013 each, though by the end of the presale, this will have risen by 80%. Investors interested in getting in early on a promising environmentally friendly cryptocurrency project should move fast, with the project having already raised over $350,000 in just a few weeks since the presale launch.
Investors should note that the remaining tokens could be scooped up quickly. A crypto whale recently scooped up over $99 worth of CCHG in one transaction, as can be verified here on BscScan.
Visit C+Charge here
Join Our Telegram channel to stay up to date on breaking news coverage