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Since Bitcoin [BTC] started 2023 on a strong note, the optimism surrounding the coin has been exceptionally high. The top-ranked cryptocurrency in terms of market value, which reached $18,000 on January 11th, then achieved an unexpected milestone.
BTC’s late-night 12 January price of $19,000 sparked discussions of a potential bull market comeback. The increase, though, was short-lived as the coin retraced to $18,807 at the time of publication.
Plan B posted his thoughts on the likely BTC price in the midst of the talks. He said that the cycle’s low point occurred in November 2022 in the $15,500 range. The inventor of the stock-to-flow model likewise believed that the five-month STH count had already entered the 2024 billing period.
The cohort of investors who have held Bitcoin for fewer than 155 days is referred to as the STH for context’s sake. Due to the circumstance, Plan B predicted that BTC would experience only minor declines and would be worth over $32,000 following the 2024 halving. He predicted that the bull market would come back the next year and that the price of the coin will reach $100,000.
Some analysts felt that it was still too early to celebrate despite the over 15% gain in value since the year’s start. Elcryptotavo, a CryptoQuant analyst, predicted a potential short-term retracement.
He agreed that even while some indices, such as the rise in spot and derivatives reserves, suggested a long-term reprieve, investors should temper their hopes for a constant upswing.
Ghoddusifar, another analyst on the extensive crypto data platform, agreed with Elcryptotavo’s viewpoint. Ghoddisufar pointed out that the present trend may be a bull trap and that if BTC reaches $19,300, it might regress. The local opposition brought this on by the local opposition.
Furthermore, the slump can be impacted by the link between Bitcoin and the US stock market. The average performance of the S&P 500 index (SPX) over the same time period was a gain of 4.5%, whereas Bitcoin’s recovery has been double digits. As a result, the expert warned that the SPX honoring a forecasted obstacle might cause the price of bitcoin to decline.
The Bitcoin Unspent Transaction Output (UTXO), excluding the impact of the stock market, was remained below the one million to three million barrier. The UTXO counts the coins that are still in circulation following a cryptocurrency transaction. Given that it was in the aforementioned area, a potential bearish crossing was predicted.
