After a long rally in the past week, the crypto or Bitcoin market has shown sideways and tends to weaken. BTC has now sunk below its psychological level of USD 21,000 and is trading at around USD 20,949.
Seeing the crypto winter conditions that have not yet shown warmth, Tokocrypto Public Relations, Bianda Ludwianto said that the crypto market, especially Bitcoin, will still have corrections in 2023.
“Projections until early 2023, bearish market conditions, BTC prices could be between USD 15,000 to USD 21,000. Meanwhile, Ethereum will remain sideways at a price of USD 1,400 to USD 1,600,” he told Liputan6.com, Saturday (21/1/2023).
It is projected that BTC’s lowest correction could reach around USD 13,000 or 80% of its ATH position in November 2021.
Meanwhile, the highest price is likely to be a bull run touching USD 29,000-USD 30,000. Meanwhile, ETH might have a bull run, reaching a price of USD 1,800-USD 2,000.
There are several factors that cause the crypto market or Bitcoin price to fall. The first is that the global crypto industry ecosystem is showing the level of concern is rising again.
“Crypto exchange, Bitzlato was closed by the authorities in the US due to allegations of processing illegal funds and added to the news that Genesis Global Capital was reported bankrupt also raised concerns among crypto investors. As a result, investors are again choosing a wait and see attitude,” said Bianda.
The next factor is the poor performance of the US stock indexes caused by the CPI hype having subsided. Crypto prices are still highly correlated with the Dow and S&P 500.
For your information, macro and crypto markets rallied after the better-than-expected CPI report, but concerns about the health of the US and global economy continue to impact both sectors.
Technical Analysis
From a technical analysis point of view, Bitcoin failed to break higher at the USD 21,500 resistance level, so there was another draw.
Investors are starting to be pessimistic that there will be a bull run and choose to exit short positions, due to sentiment from the bad news circulating.
“Bitcoin’s chart can be seen from the decline in the Relative Strength Index (RSI) which touched below the 50 level and shows an overbought signal. If the RSI signal is below 50, the BTC price is projected to be corrected again,” he said.
At the same time, Bianda observes that the crypto market is often overbought. Where when the asset price has reached a long rally, it will experience a slight correction and there is a possibility of a bull run.
The RSI remains in deeply overbought territory, indicating a possible consolidation or correction in the short time.
“Support levels now on the downside are the psychological USD 20,000 level and then the retracement level at USD 19,489. It has not been determined exactly what price will be Bitcoin’s new bottom level for this year,” he added.