After exceeding the psychological level of $30,000 bitcoin (BTC) price has followed a sideways trend throughout the past week. Going below this important threshold has made investors wonder where this flagship asset of decentralized finance (DeFi) will move next.
To help them identify potential trends in BTC’s price movements, this cryptocurrency Some investors are turning to BlockchainCenter’s rainbow price chart, which shows the historical movements of the first digital asset relative to various moving averages (MA).
rainbaow chart, BTCIndicates that ‘ is currently in the ‘Accumulate’ stage, highlighted in dark green. This phase currently stands in the Bitcoin price area between about $27,959 and $36,702, according to data received on April 17.
Year-end forecasts
Rainbaow chart shows the area between $180,311 and $245,016 for Bitcoin in the top bullish scenario (solid red) for late 2023, in contrast to the most bearish scenario (dark blue) of $20,036-$26,486 on December 31, 2023, defined as a ‘Basically a fire sale’. It defines it as ‘Maximum Bubble Zone’.
Indeed, if Bitcoin’s Rainbaow chart is to follow previous patterns, it’s a ‘Max Bubble Zone’ by the end of this year, given that the same thing happened in 2017 when BTC rose from the ‘Accumulation’ phase in May to the ‘Max Bubble Zone’ in December. ‘ means what it can achieve.
Bitcoin Price Analysis
At the time of writing, Bitcoin was trading at $29,904, down 1.37% on the day. However, while maintaining gains of 5.47% in the previous week and 8.87% in the last 30 days, it gained nearly 80% on the year-to-date (YTD) chart.
Whether Bitcoin really manages to hit $100,000 by the end of 2023 (or sooner) will depend on many factors, including the general atmosphere in the crypto industry. This atmosphere is itself under the influence of developments such as the attitude of the regulatory authorities and the results of important litigation in the sector.
You can follow the current market movements here.