Bitcoin price is predicted for the end of 2023 using this indicator
Investors are unsure of the Bitcoin price potential future path after it broke the psychological barrier at $30,000 and moved in a sideways pattern over the past week before dropping back below this critical level.
Some of these cryptocurrency traders use BlockchainCenter’s rainbow price chart, which displays the historical movements of the first digital asset about several Moving Averages (MA), to help them see potential trends in the price movements of Bitcoin.
According to the rainbow chart, Bitcoin is in the ‘Accumulate’ phase, as shown by the dark-green color. This stage is currently in the Bitcoin price range between $27,959 and $36,702.
Bitcoin Rainbow chart | Source: BlockchainCenter
In contrast to the most negative scenario (dark blue), which is defined as “Basically a fire sale,” on December 31, 2023, the rainbow chart’s most bullish scenario (dark red) for the end of 2023 defines the range between $180,311 and $245,016 as the “Maximum Bubble Territory” for Bitcoin.
Considering that the same thing occurred in 2017 when BTC rose from the “Accumulate” phase in May to the “Maximum Bubble Territory,” this indicates that if Bitcoin’s rainbow chart is to follow previous patterns, it might finish up in the “Maximum Bubble Territory” by the end of the year.
The graphic predicts that Bitcoin will trade in the “Maximum Bubble Territory” between $151,924.74 and $207,035.58 in the early summer of 2023. On June 21, 2023, Bitcoin is predicted by the most pessimistic scenario to trade between $16,443 and $21,807, or “basically a fire sale.”
Bitcoin Rainbow chart for June 21, 2023 | Source: BlockchainCenter
The ‘Accumulate’ phase in 2020 lasted somewhat longer, from May to October, and Bitcoin could not reach its peak. But, in the “Sell. Really,” it was quite close. The ‘Sell!’ area reached the ‘FOMO intensifies’ phase in August 2021 after only four months, in February 2021. This suggests that the summer of 2023 could be pivotal for Bitcoin as it could reach $114,957 to $151,925.
At the time of publication, Bitcoin was trading for $29,421, down 3% on the day but still up 5% for the previous week and 9% over the previous 30 days, while it has gained nearly 80% on its year-to-date (YTD) chart.
BTC/USD 4-hour chart | Source: TradingView
The general climate in the cryptocurrency industry, which is influenced by developments like the regulatory attitude toward it, as well as the outcome of the key legal cases in the sector, will determine whether Bitcoin manages to climb to the area above $100,000 by the end of 2023 (or sooner).
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