• Bitcoin has had a difficult year in 2022, losing up to 65% of its market value due to various occurrences.
• Investors are cautiously optimistic that the price will break above $23,000 in February 2023.
• The upcoming Bitcoin halving event in 2024 is also seen as a positive development for the cryptocurrency.
The current technical indicators show bullish momentum with an hourly MACD indicating an expanding bull zone and the Relative Strength Index (RSI) higher than 85. Moreover, support levels of $22,700 and resistance levels of $22,900 have been registered.
Terra Luna Crisis
The Terra Luna crisis was one of the major events that caused a drop in the price of Bitcoin throughout 2022. This crisis involved accusations against two major crypto exchanges – BitMEX and FTX – for engaging in illegal activities such as money laundering and fraud. These allegations resulted in their closure and criminal proceedings against their respective owners.
Impact Of The Fed Meeting On Bitcoin Price
The Fed meeting taking place in the United States is having an effect on bitcoin’s price despite declining inflation. Although it remains unclear what will happen next, some investors are hoping that prices will hold at January 18th’s high this weekend.
Bitcoin Halving Event 2024
The fact that 2024 will be a year of Bitcoin’s halving event is giving analysts hope for positive progress with the currency’s price. During this event, miners payouts will be cut by half (down to 3.125 BTC). The reduced supply associated with this event is generally seen as a positive for cryptocurrency markets overall.