It is clear from the four-hour TF that bitcoin has achieved its previous peak close to the $18,500 mark. There is sufficient evidence for a decrease to take place at present. Before, the rate climbed up to a specific level before declining abruptly. The timing is good for a downward movement as the US inflation report is being released today. Nonetheless, it is not feasible to talk about bitcoin’s growth potential until it surpasses the $18,500 threshold. The first buy signal in a long time can be connected to this success. Even if it does, it does not necessarily indicate that bitcoin will move towards $30,000 or that a new bullish trend will materialize.
Jim Cramer, the host of CNBC, recently spoke out about cryptocurrencies. He stated that he had no intention of investing in them and lamented that he didn’t go to college to become a “fool” investing in Litecoin or Bitcoin. He was of the opinion that the sector is not properly regulated and referenced an instance when he had to recover his investment in a cryptocurrency venture. Cramer advised owners of cryptocurrencies to sell off their assets as soon as possible. He is not the only individual to express doubts about cryptocurrencies; many are of the opinion that bitcoin will not recover from its current dip and that there won’t be a new “bullish” trend.
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It is important to note that 2023 will be a difficult year for the bitcoin market. Even though the halving, which is slated for next year and usually leads to a gain in the value of the cryptocurrency, there is no guarantee that it will be the same this time. Halving is when the payment miners receive for extracting blocks is reduced, from 6.25 coins to 3,125. As the current price does not make mining bitcoin profitable, it does not mean that the price should rise by twofold or more. If it does not, the mining volume could suffer a further decrease. Generally, it is not likely that the bullish trend will remain constant. The collapse of multiple major companies and exchanges has damaged consumer confidence in the bitcoin market, and more big collapses can take place in 2023.
Over the course of 4 hours, the rate of “bitcoin” rose above $17,582, yet this is only a “satellite” as compared to the price of $18,500. The destiny of “bitcoin” will be determined at the $18,500 mark. If this is surpassed, a buy signal with the target of $20,400 will be sent. There is nothing that surpasses “bitcoin”. If the rate dips below $18,500, a new fall to the level of $15,500 may begin.