During the first quarter of 2023, Bitcoin has had an incredible performance since it received hard blows with the events that have arisen between the statements of the FED throughout 2022, the War between Russia and Ukraine, and the fall of various exchange platforms. Not a very favorable outlook for what I represent throughout the year 2022, but it was expected to evolve with upward trends during the same year since the most crucial moments at the end of the year were already underway.
By 2021 bitcoin reached unimaginable values to the point that it touched almost 60,000 dollars for each extracted unit, which caused many economists to change their position and make predictions where everything points to this leading digital currency reaching 100,000 dollars by next year. Want to learn more about Crypto trading and investments? Join Bitcoin smart and get a whole new experience. Start your investment journey today and Create your account here!
Although it seems unreal, this situation is very likely to happen, only that the beginning of 2023 for cryptocurrencies is very soon to be expected to happen.
Can a trend change occur?
With the stabilization of the financial market, Bitcoin and other cryptocurrencies could take a breather, achieving a better perspective regarding the next quarter of the year.
It is a significant achievement for cryptographic investments to get out of its stagnation, which has lasted more than a year. Still, to evaluate a possible change in trend, it is necessary to carry out an elemental analysis.
The technical analysis allows us to observe the most opportune moment to enter the market, be it the purchase or sale of cryptocurrencies, and establish the necessary strategies and tools that allow this analysis to be objective and practical.
When achieving this phase, two aspects must be considered that also directly influence the valuation of cryptocurrencies: the availability of units to be extracted and the positions generated by government entities.
If we want to evaluate a possible change in trend in Bitcoin, it is necessary to know that this cryptocurrency is not the leader of digital currencies because it is the pioneer; this digital currency, unlike Fiat currencies, is produced through a computer network.
If we observe the trajectory of Bitcoin, we realize that it has been taking on more characteristics like traditional currencies in terms of its use and management because, with time, there are more aspects that the use of these digital resources satisfies.
The digitization of traditional platforms has allowed users to become familiar with electronic transactions, which means that many can carry out digital transactions in a supposed denial of the massive adoption of cryptocurrencies.
Financial Forecast for 2023
Although Bitcoin prices have shown a significant drop during 2022 compared to the values recorded during 2021, this first quarter of 2023 showed that even in complex scenarios, it could have an encouraging attitude and achieve the rise that everyone expects.
Economists assume that there is a continuous recovery; the analysis of the graphs and its trajectory show that the price of Bitcoin reached minimum historical values in the last six months of 2021.
Its closing value for the first quarter was below the initial deal with which 2022 started; that is, its initial value was around $46,000, and it closed the quarter between $45,000 in the same year.
According to market analysts, the expectation that the value of Bitcoin will resume its upward trend is very likely for the second quarter of 2023 since the candles have shown that they are in a recovery phase, which undoubtedly indicates an upward trend.
One of the forecasts that have caused the most controversy is that when Bitcoin has downward trends, its recovery is usually to generate digital currency values higher than the last historical maximum value.
It generates excellent commotion among its users since it could generate profits collectively by triggering the invested capital of many of the investors.
This year has shown that a digital financial system sounds plausible for a country’s economy since cryptocurrencies, especially Bitcoin, have allowed nations to emerge during crises that can even significantly affect the stability of nations, such as the case of Russia and Ukraine.
The financial markets are volatile, and although the cryptocurrency market is much riskier, it is also a matter of seeing in detail what type of operations are convenient to analyze for what is coming in the second quarter of 2023.