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Why Crypto Prices Are in For A Strong Week Ahead as Bitcoin Strengthens Above $20k

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Jamie McNeill

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Jamie McNeill

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Last updated:

October 23, 2023

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After over a year of bear market, with the Bitcoin price falling from the highs of $69k to lows of $15k, there finally appears to be some bullish sentiment, with the Bitcoin price appreciating once more and the rest of the market following suit.

Ethereum has also managed to reclaim $15k, and smaller cap alt coins such as Solana and Cardano have managed to make far more significant gains, albeit they fell much further leading up to this moment.

Bitcoin strengthens above $20k

The Bitcoin price has now been strengthening above the $20k threshold, and even managed to break above $21k, which is an extremely bullish threshold to have overcome.

There are many who believe that the market has thus now bottomed out, and that the price ought to consolidate and appreciate from here.

This comes within the larger macroeconomic situation of falling inflation, and increased likelihood of a Fed pivot thanks to the depressed value of risk on assets such as the stock market.

Sellers are exhausted

After about a year and half of a bear market now, many sellers are exhausted, and there simply aren’t many people left to sell.

Short term traders and speculators have been punished for their myopia, and

According to on-chain analytics, over 80% of Bitcoin is now held by long term holders, who are extremely resistant to the volatility in prices. It is thanks to the other 20% that the price oscillates so much.

Short sellers liquidated pushing price to the upside

Short sellers have been struggling as of late, as their bearish bets have been heavily punished.

Many were speculating that the price of Bitcoin ought to reasonably fall to $11k or lower, in order to reflect the same magnitude of decline as previous bear markets.

However, many short sellers have become forced buyers, particularly once Bitcoin broke above $18k and $20k, which has contributed to the price being pushed even further higher.

For now, it seems that there aren’t as many significant clusters of short sellers yet to be liquidated, although this situation could change quickly.

Plan B has a new BTC price prediction

Plan B, the anonymous on-chain analyst has recently published some new predictions for the Bitcoin price, in which he makes the case that the Bitcoin price has already bottomed out, and will continue to rise into the halvening and beyond.

My 2 sats on #bitcoin price:
– November 2022 low of $15,5K was the bottom
– BTC has crossed Short Term Holder (STH) and will rise into 2024-halving and subsequent 2025 bull market. Several on-chain signals confirm STH signal.
– 2024 halving will be >$32K
– 2025 bull market >$100K pic.twitter.com/0QtbeOXwsG
— PlanB (@100trillionUSD) January 12, 2023

If Plan B is correct, then now is an extremely bullish time for the markets, and Bitcoin has the potential appreciate by several multiples over the next year and beyond.