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Bitcoin has once again hit a new high in the last five months wavy crossed the $23k range before retracing to $22,760 at the time of writing.
The largest crypto by market cap recently traded above $22,750, roughly flat over the last 24 hours but up more than 8% over the past week.
This dominant coin witnessed a buoyant year, rising by almost 37% and not succumbing to various crypto industry barriers.
For example, Joe DiPasquale, CEO of cryptocurrency fund manager BitBull Capital, notes: “a long consolidation phase that shorts accumulate” in Holdco LLC’s latest Genesis Global application for Chapter 11 bankruptcy protection.
He also added that spikes were common in the first quarter.
“The market has been on the upswing, partly triggering a short squeeze,” wrote DiPasquale, adding caution that “Bitcoin and some altcoins are overheating and about to correct. “We wouldn’t be surprised to see Bitcoin test $20,000 in the coming days.”
“For the week ahead, market participants should watch for downside risks and potentially look for gains.”
Moreover, Bitcoin has maintained its dominant position among other global assets outperforming major asset classes in 2023 amid a more promising macro picture.
In a recent poll conducted by the University of Michigan, it was found that US short-term inflation forecasts declined in early January to their lowest level in more than two years, boosting consumer confidence more than anticipated.
In addition, with prices continuing to cool, the Federal Reserve is poised to raise smaller interest rates, although it is expected to continue raising rates until pressures show more definite indications of weakness.
Bitcoin Will Reach $35k To $44k By 2023
Even the bulls, however, show some reservations. Sean Farrell, Fundstrat’s head of digital asset strategy, predicts that Bitcoin will increase from $35k to $44k this year and Ether will reach $2,400 to $3,200.
However, he cautioned that there could be market volatility due to issues such as the ongoing turbulence in the Digital Currency Group.
“Despite our view that absolute bottoms for the major are on the way, we still believe there are some near-term risks to watch,” Farrell wrote in a note on Jan. 21.
“This includes additional falls from DCG, another swipe on risk assets at the next FOMC meeting, and the fact that despite the recent rally, we are still in the midst of what we consider to be a bear market on-chain.”
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