The year 2022 was a bad year for cryptocurrencies, including Bitcoin. BTC prices lost more than 30% since the start of the year. We currently are in a consolidation phase around the psychological price of $20,000. Can Bitcoin reach 30000 $ before 2023? There are 3 months left for prices to make a 50% increase…Let’s analyze in this Bitcoin price prediction article.
How did Bitcoin Perform in 2022?
Bitcoin prices started to crash after reaching their all-time high price of around $69,300. Prices immediately tumbled down and reached around $48,000 when 2022 just started. Many analysts predicted that the year 2022 was going to be a bad one for cryptos. This is because of Bitcoin’s technical formation that showed a head and shoulder formation. This pattern is heavily bearish, and often hints at lower upcoming prices.
This formation got confirmed when prices dipped and reached the psychological price of $20,000. Bitcoin prices even breached this price lower, creating the current consolidation phase between $18,500 and $22,500.
Bitcoin Price Prediction – Will Bitcoin reach $30,000 before 2023?
For Bitcoin price to reach $30,000 from the current price of $20,000, this assumes a 50% increase in prices. This 50% increase within 3 months might sound impossible. However, the previous average returns of Bitcoin in the months of October, November and December show a different story.
In figure 2 below, we see the following monthly average performances for Bitcoin:
- October: +26%
- November: +39%
- December: +11%
This shows that there is still hope for an increase of 50% in Bitcoin prices. Of course, this all depends on how Bitcoin prices react in the coming few weeks. Past performances are not indicative of future prices, and we need to understand how to limit risks.
Which is Better: Bitcoin or Altcoins?
The term “Altcoin season” started back in 2020, as altcoins started to make higher gains than Bitcoin. However, we all saw how most of them crashed by more than 90% in the recent crypto crash. We need to understand that Bitcoin is becoming an established cryptocurrency with a less volatile price.
Now you might be asking: how can a 70% crash be less volatile? Well, to answer this, we need to go and look at Credit Suisse and Facebook’s share prices. They both lost more than 60% since the beginning of 2022. Can we say that Facebook’s share price is volatile? Not really Volatility stems from high changing prices within a very short time frame.
Getting back to our answer, investing in altcoins during bear markets is not a good thing to do. However, once the market turns bullish again, it might be a good idea to search for those altcoin gems which we listed in this article.