According to popular market analyst Mags, Bitcoin (BTC) has the potential to reach $50,000 in 2023 based on a historical price fractal highlighted by the analyst. The fractal chart highlights the parallel between Bitcoin’s current price trend and those recorded after the 2013-2015 bear market. The chart also shows Bitcoin’s consolidation within the $200-$300 range between January-August 2015 nearly identical to its 2021-2022 consolidation between the $18,500-$25,000 range. BTC’s breakout above the $16,000-$25,000 range in March 2023 is also featured as being comparable to the breakout above the $200-$300 range in October 2015 that resulted in a rally towards $700 in June 2016. Thus, Mags sees the possibility of BTC’s price doubling to $50,000 in 2023.
The bullish forecast comes amidst expectations of the US Federal Reserve reducing the pace of its interest rate hikes. Lowered rate expectations lead to declining yields on the benchmark US 10-year treasury note, which has subsequently increased investor interest in zero-yielding assets such as Bitcoin and gold. Lower yields have also led to a fall in the demand for the US dollar. As Bitcoin’s value is denominated primarily in dollars, higher prices for BTC/USD are expected. However, Bloomberg analyst Mike McGlone warns that a potential liquidity crunch could trigger a bull trap in the Bitcoin market.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their research before making a decision.