• Bitcoin [BTC] holders might face a tough year in 2023 as negative sentiment continues to trail the king coin.
• CryptoQuant analyst Gigisulivan assessed BTC’s Stock to Flow Reversion and opined that BTC’s price might dip further below the $16,700 price mark at some point in the current bear market.
• CryptoQuant analyst Yonsei_dent found that negative sentiment continued to grow as the long-term holders of Bitcoin intensified their coin distribution.
The future of Bitcoin’s [BTC] price in 2023 remains uncertain as traders and investors attempt to navigate the current bear market. Trading at $16,941.08 at press time, the BTC traded within the $16,500 and $16,900 since last December, per data from CoinMarketCap. Read Bitcoin’s [BTC] Price Prediction 2023-24
The CryptoQuant analysts had an assessment of two on-chain metrics, the Stock to Flow Reversion and the Support Adjusted Dormancy indicator, to determine the future price of the king coin. Gigisulivan predicted that BTC might attempt to trade in the $20,000 to $22,000 price range following the release of favorable Consumer Price Index data (CPI) next week. However, this suggested that BTC holders should not expect much, the analyst concluded by adding that, „Just a thought, considering 2023 could be worse than 2022 once we know what sort of recession we are getting.“
Yonsei_dent noted that the Support Adjusted Dormancy indicator has been on an uptrend since the middle of December which signals a negative sentiment among Bitcoin’s long-term holders. This could be an indication that they are attempting to sell off their coins to hedge against further losses on their investments. This could have an effect on the overall price of Bitcoin as the selling of coins can cause the price to drop.
The negative sentiment surrounding Bitcoin has been lingering since the collapse of FTX exchange in the summer of 2020. This has caused many BTC holders to fail to see profits on their investments since then. The uncertainty of the future of Bitcoin’s price in the bear market has made it difficult for traders and investors to make decisions on whether to hold on to their coins or sell them off.
Despite the negative sentiment, there is still hope for Bitcoin investors. If the Consumer Price Index data is released favorable next week, the price of Bitcoin could go up again. However, it is important to remember that the future of Bitcoin’s price in 2023 is still uncertain and traders and investors should be cautious when making decisions.