Bitcoin is facing a "Bottoming Candle" this year, but Bitcoin price trends may also surprise the market. In a tweet on the 11th, popular trader and analyst Rekt Capital predicted that Bitcoin could see an “amazing upward trend” this year.

K-line chart preview: Bitcoin may have room for big gains

Rekt Capital analyzed the four-year market cycle of the "Bitcoin reward halving event" and pointed out that 2023 is the deadline for the next "bottom K-stick".

The next Bitcoin reward halving will occur in 2024, so the next 12 months should see a price bottom, coupled with a sharp rise in price as the event approaches. Therefore, 2024 will be the fourth K-stick of the Bitcoin reward halving cycle, and 2023 will be the third K-stick.

Rekt Capital said: "The third K bar is the bottom K bar of Bitcoin's four-year cycle, but it can still generate considerable upside." He said:

The third K bar in 2015 saw a surge of 234%, and the third K bar in 2019 also saw a rise of 316%. The 2023 3rd K-rod may have a stronger upside.

Observations on some other chains have led market participants to similarly optimistic conclusions.

Among them, according to indicators observing the current situation, the unrealized loss ratio of Bitcoin holders continues to remain in the "surrender" stage.

Trading and analyst account Game of Trades tweeted on the 11th:

These have always been the most profitable times to accumulate Bitcoin. Net unrealized profit/loss remains deep in capitulation territory.

Analysts warn: Overall environment in 2023 similar to global financial crisis

However, judging from the current economic environment, it may be difficult for crypto asset prices to rebound significantly. As inflation weakens, the Federal Reserve will continue to raise interest rates, and now the market is focused on the long-term policy direction.

Analysts including Nick Gerli, founder and CEO of Reventure Consulting, said the next step that will affect market sentiment may be deflation, not inflation.

Nick Gerli warned that conditions were ripe for a repeat of the 2008 global financial crisis-like recession, with "the savings rate falling below 2.2%, its lowest level ever". He said:

This means that the American people are running out of money. The last time it was this low was in 2006-2007, just before the global financial crisis. Great Recession Warning. Consumer spending is expected to fall sharply in 2023. "

The market will now focus on the U.S. Consumer Price Index due out tonight to assess expectations for a rate hike by the Federal Reserve (Fed) to determine how Bitcoin will react.

This article will "halving market" start? Analyst: Bitcoin has “big room to rise” this year first appeared on Blockchain.