you love it or you hate it, you can’t ignore it

As the next halving cycle approaches, the technical picture suggests a bullish Bitcoin outlook for 2023. Clearly, this year could be a good one for the cryptocurrency. Love it or hate it, you cannot ignore Bitcoin price action in 2023.

The upcoming halving event combined with the four-year history of positive price action following previous halving cycles could lead to significant growth for the BTC price. The stochastic indicator also suggests a short-term bullish trend.

But it’s not just the short-term outlook that looks promising for Bitcoin. The long-term outlook also looks optimistic.

However, it is important to remember that Bitcoin is still in a bearish market. Despite the half-cycle optimism and oversold technical indicators, it is important to wait for price confirmation and a trend reversal.

Despite these challenges, it is clear that Bitcoin’s outlook for 2023 is worth paying attention to. Whether you’re a long-time believer in crypto or just want to ride the wave, it’s a year that could have a significant impact on BTC’s future.

Below we will discuss why 2023 will be a bullish year.

Long Term Analysis of Bitcoin – Halving Cycle

Bitcoin halving cycles

While the next halving is scheduled for 2024, the years leading up to the halving are important years for Bitcoin. But why is this the case?

First, it is important to understand that halving events occur approximately every four years, and the years leading up to these events have been consistently bullish for BTC. In 2011, 2015 and 2019, the Bitcoin price ended the year significantly higher than it started.

It’s hard to say for sure if this is a coincidence, but the pattern is certainly worth considering.

Another similarity between the years leading up to the previous halving cycles is the fact that the monthly stochastic indicator has consistently been in an oversold state. This indicator is often used as a bullish reversal signal, suggesting that the market is ready for a reversal.

As we enter 2023, the stochastic indicator will also remain in an oversold state, potentially signaling further growth for Bitcoin.

With these historical patterns in mind, it is clear that 2023 could be an important year for Bitcoin.

Bitcoin Short Term Analysis – Wyckoff Accumulation Phase

Wyckoff Accumulation Phase Bitcoin

In the near term, based on Wyckoff analysis, Bitcoin may be establishing a base as the Wyckoff accumulation pattern plays out.

The 6-month-old trading area since mid-June looks like the Wyckoff accumulation phase. If we compare the current Bitcoin price with the Wyckoff chart, we may be in the final phase of the accumulation pattern.

If the accumulation pattern continues, the November low of $15,512, which represents the spring phase (Phase C), may actually be the bottom of this bearish cycle. The feather pattern is often considered a bear trap.

If this is indeed the case, Bitcoin has entered Phase D, which calls for a price recovery. If the BTC price can regain the top of $25,214, the next upgrade phase can begin.

Conclusion

The technical indicators and historical patterns suggest that 2023 could be a bullish year for Bitcoin, but it is important to wait for confirmation and trend reversal. It appears that the Wyckoff accumulation pattern is currently unfolding, with the current trading range and BTC price suggesting that the final phase of this pattern may be underway.

If the accumulation pattern follows its fundamentals, the November low of $15,512 could mark the bottom of the current bearish cycle and the start of a Bitcoin price recovery.

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