Last year, I told you I was going to stay far away from the crypto space.
We saw several major crypto companies crash and even go bankrupt. I’m talking about FTX, Voyager, Three Arrows Capital, BlockFi, Luna and Celsius.
This was due to fraud, corruption, and bad business practice.
I mean FTX was using QuickBooks to handle their accounting reports worth billions of dollars!
Unfortunately, these reckless companies brought down the price of some key cryptos like:
Bitcoin, Ethereum, Binance Coin and Cardano.
But since January 2023 the season appears to have changed and we could see a fresh spring in cryptocurrencies step!
In fact, Bitcoin has already rallied more than 80% since the start of the year.
And I think this is just the beginning for Bitcoin!
Here are three reasons why I am bullish on Bitcoin in 2023.
Reason #1: Bitcoin could hit $100,000 in 2023
Bitcoin is buzzing!
I mean we are now seeing transactions hitting new all-time highs with nearly 1 million active addresses.
Also, crypto sentiment and confidence is picking up with Bitcoin’s returns and investors are piling into the coin like never before.
We are starting to get directors from top companies even making crazy Bitcoin predictions.
For example, last week Marshall Beard (Chief strategy officer at Gemini) wrote he thinks Bitcoin could reach an all-time high this year and hit $100,000.
We then have Paolo Ardoino, CTO at Tether, who also shared his bullish outlook.
He stated Bitcoin could retest its all-time high near $69,000.
Well, I might not be as optimistic as Mr Beard and Mr Ardoino, but I do think Bitcoin could rally over 33% in the next month or so.
Reason #2: Big corporations are owning more crypto
Since 2020 when Bitcoin halved, we saw two major companies buying into Bitcoin, Tesla and MicroStrategy.
Since then, many large institutions have been using and adopting bitcoin into their businesses.
Some include: Galaxy Digital Holdings, Block Inc, Voyager Digital LTD, Wikipedia, Microsoft, AT&T, Burger King, KFC, Subway, Pizza Hut, Virgin Galactic and so on…
The major interest from companies and professional investors adopting Bitcoin has most likely had a major positive effect on its price.
And things are looking even better.
At the moment, there are court cases that are in the pipeline.
And they are working on ways to clarify the legal status of Bitcoin and other tokens.
For example, judges are currently discussing if the Securities and Exchange Commission (SEC) was justified in denying applications for a Bitcoin exchange-traded fund.
If the court cases provide clear guidance on Bitcoin’s legal status, it could reduce uncertainty and risk.
And this could make Bitcoin more attractive to investors and more companies could then adopt the digital coin.
Let’s look at the technicals.
Reason #3. Bitcoin is ready to charge with this Wedge formation
We’re looking at the daily Bitcoin chart.
We can clearly see since January 2023 up to April 2023, the price has been on a strong upward trajectory.
It’s moved from a low of $16,903 up to a high of $31,059. That’s an 83% rally in just 4 months.
Since then, the price has had a correction and has retraced a bit. During that time, it’s formed what’s known as a Continuation Falling Wedge pattern.
This is where the price constricts into a falling triangle shape, until it reaches the apex. Last week, we saw Bitcoin’s price break up and out of the apex.
This means, buying and demand is flooding back into the market and will continue to do so. All in all, I think it’s safe to say my price target for Bitcoin is at the next resistance (ceiling level) at $36,286.
Here’s how I’ll profit from the 33% Bitcoin rally
First, I’ll buy the Bitcoin CFD and hold it until it reaches my price target where I’ll bank a hefty profit.
If you’re taking a longer term view on Bitcoin and cryptocurrencies, then I strongly recommend you read this report on the Three Cryptos to own this decade.