The Appeal of Cryptocurrencies in 2021
Cryptocurrencies have been gaining popularity and acceptance among investors and financial institutions. In April 2021, Coinbase, a significant cryptocurrency company, became the first to go public. Additionally, the first U.S. exchange-traded fund focused on Bitcoin was introduced in October of the same year.
Bitcoin’s Prosperous Year
Bitcoin, the most well-known cryptocurrency, had a prosperous year in 2021. Its value has grown by approximately 70% since the start of the year, pushing the total market value of cryptocurrencies past $2 trillion. Other digital currencies such as Dogecoin (DOGE), Litecoin (LTC), and Ripple (XRP) have also significantly increased in value.
Crypto Predictions for 2023
Bitcoin Price Prediction
Technical analysis indicates that the BTC/USD pair has broken through the double-bottom support level of $20,350, indicating a significant bearish trend. The immediate support level for Bitcoin is $18,430. If this level is breached, selling pressure may increase, resulting in a further decline towards the $16,400 level. On the other hand, the first barrier for Bitcoin is at the $20,300 resistance level. If Bitcoin breaks above this level, it may generate buying pressure and push the price up to $21,400. If the current bullish trend continues, Bitcoin could even reach the $25,000 mark.
Ethereum Price Prediction
The cryptocurrency that powers the smart-contract-enabled Ethereum blockchain, ETH, was last trading near $1,425 after US wage growth came in lower than expected and the US unemployment rate unexpectedly increased to 3.6%. However, Ether is down nearly 1% on the session and nearly 7% lower in the last 24 hours. Its price plummeted from the mid-$1,500s due to concerns about the collapse of crypto-friendly Silvergate Bank and a growing liquidity crisis at fellow crypto-friendly bank SVB Financial. Additionally, the New York Attorney General referred to Ether as a security in its ongoing lawsuit against KuCoin, adding to the sell pressure. Recent regulatory concerns may further impact the cryptocurrency’s performance.
Cardano Price Prediction
Cardano, a cryptocurrency that has been in a downtrend since June 2022, has dropped below all of its major moving averages. The failure to break above its 200-Day Moving Average last month indicates a lack of momentum for a significant positive shift in the near-term price outlook. The cryptocurrency’s outlook isn’t promising in the near term, with a drop below $0.30 likely. This would pave the way for a drop back to late-2022 lows in the $0.24 range, a 24% drop from current levels.
Conclusion
Despite some concerns and uncertainties, the appeal of cryptocurrencies persists, and investors can expect an exciting journey ahead. The predictions for Bitcoin, Ethereum, and Cardano in 2023 indicate potential opportunities and challenges for cryptocurrency enthusiasts and investors alike.
