The Bottoming Candle Breakdown
In the weaving world of cryptocurrencies, Bitcoin (BTC) is strutting around in 2023, flaunting what traders call a “bottoming candle.” But don’t let its name fool you—this candle is more than just a flicker; it’s a prelude to what could be a thrilling rollercoaster ride this year.
Traders’ Predictions: All Aboard the BTC Express!
On January 11, the enthusiastically followed trader Rekt Capital forecasted a potential upswing in BTC/USD pricing. With a twinkle in his trading eye, he’s hinting that there’s a “decent upside” waiting to be grasped this year.
Charting the Excitement
Rekt Capital has meticulously studied Bitcoin’s past four-year cycles that correspond with subsidy halving events. Guess what? 2024 marks another such event, and as we peel back the calendar, we find 2023 is crafted as the candle drooping just before it.
- 2015’s Candle 3? A dazzling +234% surge!
- 2019’s Candle 3? A jaw-dropping +316% explosion!
“Candle 3 in 2023 may see stronger upside than most think,” Rekt confidently declared.
Hodlers’ Blues: Bye-Bye to Unrealized Losses?
Some on-chain indicators are chiming into the optimistic chorus. As BTC bellwethers track unrealized losses among hodlers, there’s a soft spotlight shining on phase capitulation—an unfortunate yet hopeful state where purchasing Bitcoin becomes more enticing than ever.
Profitable Accumulation—When the Times Are Tough
Trading and analytics platform Game of Trades chimed in, asserting that “these have been the most profitable times to accumulate Bitcoin,” with the market still grappling within the depths of capitulation. Essentially, if you were sitting on the sidelines twiddling your thumbs, it might be the right time to action those long-held, hopeful dreams of buying Bitcoin.
Economic Clouds Looming Over Bitcoin’s Future
However, let’s rain check our excitement for a moment. The macroeconomic landscape seems to be the party pooper of the cryptocurrency fiesta. With the Fed persistently raising interest rates in a bid to quell inflation, there’s table talk about heading into a deflationary spiral instead.
Echoes of 2008: A Cautionary Tale?
According to Nick Gerli from Reventure Consulting, recent trends showcase a startling reality. The U.S. savings rate has plummeted to levels not seen since before the 2008 Global Financial Crisis (GFC). That’s right, it’s now down to a shaky 2.2%. Can you feel the tension? As Gerli notes,
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