Bitcoin (BTC) price rose 47% in January 2023 and peaked at $24,300. Yet traders remain skeptical and expect a significant price correction in February 2023.
Cryptocurrency traders have seen many ups and downs in recent years, but despite volatility, the cryptocurrency market continues to attract more investors.
January 2023 saw a surge in cryptocurrency prices, with Bitcoin, the largest and most pioneering crypto, rising nearly 47%, to reach a high of $24,300.
However, as the market begins to show signs of consolidation, many cryptocurrency traders are skeptical about the future, predicting a price crash by February 2023.
Cryptocurrency Traders Are in Disbelief
Despite the prevailing skepticism among traders, some experts believe that this outlook actually improves the likelihood that prices will continue to rise. According to on-chain data analysis firm Santiment, prices in the crypto market tend to move in the direction that most traders consider least likely.
When a large number of traders are bearish, it creates a situation where there is limited selling pressure, as well as a large number of potential buyers. This sets the stage for prices to continue rising.
Technical analyst Adrian Zduńczyk, also known as Crypto Birb, believes, based on his own observations and research, that the crypto market is in disbelief mode. He argues that many cryptocurrency traders “still struggle with cognitive dissonance and give very little thought to the recent reversal.”
In many cases, skepticism is fueled by past experiences of market cycles, where prices have risen only to ultimately fall.
More Earnings on the Horizon
Veteran trader Dave the Wave believes that as the crypto market takes off, some crypto influencers will have some explaining to do about “why they got caught napping.”
The analyst seems to disagree with Crypto Capo and Profit Blue, who remain convinced that a capitulation event has not yet occurred, which could push Bitcoin towards $12,000.
The former argues that a sustained drop below $22,250 could create the conditions for a market crash, while the latter believes a 55% correction is in the works for BTC.
Regardless of the recent price action and high levels of skepticism in the crypto market, Dave the Wave claims that Bitcoin is currently trading in the middle of a “buy zone,” based on its logarithmic growth curve.
This technical pattern suggests that there is a high probability that the price will continue to rise in the near future. Still, the overall price path remains upward. As the asset becomes more widely adopted, the number of people who own it and are committed to its success continues to increase.
Anyway, investors should approach the market with caution and be prepared for both the potential for profit and the possibility of loss.
By Audy Castaneda
