Is Bitcoin a good investment for January 2023?

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After a turbulent year, Bitcoin (BTC) investors are watching the flagship cryptocurrency’s likely performance in 2023. Notably, as the New Year approaches, Bitcoin is still operating in a high inflation environment that has partly contributed to the asset’s decline in value by more than 70% from an all-time high of nearly $69,000.

Looking back to 2022, Bitcoin has been among the worst performing assets. According to a previous Finbold report, Bitcoin was the worst performing financial market asset in 2022, with returns of -60%.

Indeed, Bitcoin is set to end the year in a consolidation phase after failing to capitalize on a recent relief rally inspired by positive macro factors. At the same time, Bitcoin has been weighed down by crypto industry scandals like the collapse of the FTX trading platform.

bitcoin price analysis

At press time, Bitcoin was trading at $16,490 with a daily correction of around 0.3%. Since the start of the year, the first digital asset has plunged nearly 65%.

Bitcoin YTD price chart. Source: Finbold

At the current price, Bitcoin was unable to recover the $17,000 support level. Notably, the breakout of the position is seen as key to helping the asset rally. In the meantime, crypto trading expert Michal van de Poppe noted that if BTC breaches the $17,400 and $17,600 resistance levels, the asset will be in line for another relief rally.

A review of Bitcoin’s technical analysis indicates that the asset is in a bearish mood. In particular, a summary of the daily gauges on TradingView recommends strong selling sentiment at 16, while the moving averages are also for strong selling at 14. Oscillators are for sale at 2.

Bitcoin technical analysis. Source: TradingViewWhat does 2023 hold for Bitcoin?

Undoubtedly, Bitcoin investors will be looking at how macro factors play out and the eventual Federal Reserve pivots in 2023. For example, David Kemmerer, CEO of crypto tax software CoinLedger, believes that Bitcoin is likely to correct further in the first half of 2023 expecting the fallout from the FTX collapse to spread further.

At the same time, the Bitcoin community hopes that the current consolidation phase can lead to a price bottom and serve as a basis for the recovery of the asset. Interestingly, there are signs that Bitcoin could be poised for another rally, given that the asset recovered from the FTX crash faster than other sellout events.

Additionally, looking for a bottom, Bitcoin could correct to $9,000. Notably, the level served as the basis for the latest bull run.

However, as reported by Finbold, CoinMarketCap’s cryptocurrency community remains bullish on Bitcoin’s price. The community predicts that Bitcoin will likely trade at $19,640 on January 31, 2023.

Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.

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