Historical Bitcoin price fractal hints at rally towards $50K
Bitcoin (BTC) could rise towards $50,000 in 2023, according to a historical price fractal highlighted by popular market analyst Mags.
Bitcoin Price Trend in 2015 vs. 2023
The chart fractal highlights the similarities between Bitcoin’s ongoing price trends and those recorded after the completion of the 2013-2015 bear market.
That includes Bitcoin’s consolidation within the $200-$300 range between January 2015 and August 2015, which appears to be identical to the consolidation between $18,500-$25,000 following the presumed completion of the 2021-2022 bear market.
BTC’s price broke above the $16,000-$25,000 range in March 2023, prompting Mags to highlight the similarity to the breakout above the $200-$300 range in October 2015.
Since this resulted in a rally towards $700 in June 2016, the analyst sees the scenario potentially repeating itself in 2023, with BTC’s price doubling to $50,000.
“Being bearish here [when Bitcoin’s price is around $28,000] is like being bearish at $350,” Mags added.
Liquidity crunch could destroy Bitcoin price rally
The bullish argument for Bitcoin comes amid expectations that the US Federal Reserve will slow the pace of rate hikes.
Due to lower interest rate expectations, the yield on the US 10-year government bond has fallen. This has in turn increased investors’ appetite for zero-yielding assets, such as Bitcoin and gold.
In addition, lower yields have also weakened demand for the US dollar, with the greenback losing 1.33% in 2023 against a basket of top foreign currencies. Since Bitcoin’s value is largely denominated in dollars, that means higher prices for BTC/USD.
Related: Latest Bitcoin Price Data Suggests Double Top Above $200K in 2025
However, Bloomberg analyst Mike McGlone has warned of a potential bull trap in the Bitcoin market due to a growing liquidity crisis.
He said:
“It may be illogical to expect the stock market, crude oil, copper and the Bloomberg Galaxy Crypto Index (BGCI) to sustain recent gains with measures of money supply and commercial bank deposits falling around 2% year-on-year.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
