Bitcoin is causing a stir. Recently, the queen of cryptocurrencies, weighed down in 2022 by the bursting of bubbles in risky assets (including stocks) and scandals (FTX, etc.), has been catching up with a bang since the beginning of 2023, returning finally in more 21 thousand dollars, thus returning to the peak of early November. This strong chart resistance (from a technical analysis point of view) and the speed of price growth may favor profit-taking and a possible downward correction in the short term.
This year, investors bet on a gradual increase of bitcoin must see their nerves put to the test. Indeed, the underlying trend has not yet become bullish at this stage, while many uncertainties may favor unpleasant surprises and high volatility. Indeed, inflation, the ebb and flow of which has eased markets in recent months, may fall less than expected so that the Fed could maintain a tighter monetary policy for longer than expected, which would be especially unfavorable for Nasdaq and bitcoin, historically closely related. The unfavorable trajectory of global liquidity is a headwind for all risky assetswhich cryptocurrencies.
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For his part, Mike McGlone, commodities strategist at Bloomberg, says he remains vigilant as the world economy experiences a “historic recovery”, after years marked by the Covid-19 pandemic (which caused a historic shock to GDP) and a war in Europe (invasion of Ukraine), among others.
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Subscribers to Momentum, Capital’s premium stock market investment papers and newsletters, and those of 21Millions, its cryptocurrency newsletter, have recently been able to benefit from significant increases in the prices of ether (Ethereum) and bitcoin.
Indeed, the cryptocurrency queen accelerated higher as expected after initially overflowing chart resistance (technical analysis) of $16,946-17,057, then, in a second step, resistance $18,200-18,540. Our main short-term target ($20,352-$22,000 strong resistance area) has been achieved as expected. As for the ether, it was also pulled from the game, as expected.
After the FTX affair, what is the future for cryptocurrency in 2023?
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