Bitcoin can be viewed as digital gold, or a broader representation of the operation and growth of the virtual currency industry. Indeed, the idea that digital has weight is based on the dynamics of supply and demand. If enough people say it is worth $100, 000 then it is definitely worth it.
Before investors adopted BTC as a tool to fight inflation, BTC was rising gradually. Today, however, only 17% of Bitcoin is held by retail investors.
As a result, the dominance of cryptocurrency whales and market makers is still much stronger allowing it to one day become a decentralized currency. Transaction processing is definitely decentralized, but this cannot be shown out loud.
Bitcoin’s market capitalization has reached $324 billion, with approximately 1.5 million tokens in circulation. Despite low valuations, tokens are showing strength to return to previous levels with continued consolidation and breakout attempts. Enthusiasts view the current levels as a once-in-a-lifetime buying opportunity, the only question is whether it can overcome its previous peaks, and here’s our forecast for BTC’s future!
Bitcoin price action has yet to show any positive or negative predictions. The consolidation zone between US$15500 and US$18,000 has persisted since the November 2022 decline, and BTC’s short-term outlook hinges on its ability to break and retest the 100 EMA and 200 moving average curves.
The candlestick pattern after the first week decline in November indicates a support level theory. A buying wave was expected due to consolidation, but despite the increase in RSI levels, the actual price moved only an inch.
On the other hand, the strengthening level indicates strength. Buying at current prices increases the likelihood of immediate gains, but the downside is immense. Therefore, entry into the market must be strategic.
The 100 EMA curve is currently just above $18, 000, putting significant pressure on buying upside. While the profit-taking stance has not yet weakened, the outlook for BTC hinges on its ability to break through the short-term moving average curve.
Support for Bitcoin is strong and active from the US$15, 650 level, which has yet to be hit. Buyers looking to make a purchase are on the right track by continuing to buy portions of BTC, but buyers looking to make money quickly may find themselves in a difficult situation.
On the weekly chart, BTC fell significantly last week and selling pressure is slowly building as the RSI has barely moved from 35 on the weekly chart.