We must not lose perspective: The situation of Bitcoin in 2023

Things were really difficult for the financial world in 2022, and Bitcoin was no exception. In fact, after 14 months of a bear market that seemed to never end, traders and investors are seeing a light at the end of the tunnel in the last days.

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End of the Bearish Tunnel: Trap or is it really the end of the abyss?

It is no secret that nobody knows exactly, because although in fact, it seems that the trend of Bitcoin is about to change to turn bullish and remain bullish in a sustained manner, experience tells us to be cautious.

We may actually be at the end of the downtrend and actually entering the uptrend, and numerous technical indicators seem to be suggesting this (including the Ichimoku indicator). It is also suggested by the fact that we are only a year away from the next Bitcoin halving, and historically, one year before each halving; the price of Bitcoin has been seen to start going up to at least the last ATH (all time high).

If this repeats itself, as logic suggests, we should see Bitcoin at $60k again in 2023, but again, we have to be very careful what we do in that regard; because the year is still young and capable to trap unsuspecting traders and investors in a bear trap.

We must not lose perspective

So we must not lose perspective on the matter, like everything in life, we must know where we are and where we plan to go. It is true that it is not certain that the current moment of the price and trend of Bitcoin is a trap, but you have to be careful, because in all this of cryptocurrencies, nothing is written in stone; so there is a bit of common sense to have in all this.

And even more when we consider the fact that a large part of the factors and market players are aware of all of the above, that is; they are also aware that 2023 is the pre-halving year and that Bitcoin should assume an upward trend before end of the year.

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But let's remember that the financial and cryptographic markets are like a living organism, which thinks, lives and breathes, and whose movements are given based on existing supply and demand, and said supply and demand depends on the decisions and actions of each one of the factors and actors that intervene at all times in the markets. Based on this, as traders, we cannot know for sure what will happen to the price of Bitcoin this year, we can only intuit it.

Nor am I saying that we should put ourselves in the worst scenario, because that is not what it is about; in fact, I believe that we should be quite optimistic in this sense, but keeping our feet on the ground, because it is something extremely important, and that is why we should proceed with extreme caution (greater than usual) in everything related to our purchases and sales of Bitcoin during this 2023. And part of that extreme caution consists in making an even more careful management of our trading and investment capital and the risk that we assume during this 2023.

So I reiterate, let's not lose perspective; The situation of Bitcoin is entering an interesting point right now, but it does not mean that the bull run or anything like that is about to happen, because there are still no indications so that we can confirm that. Objectively, according to Ichimoku, Bitcoin would have to maintain price levels above $42,500 by the end of 2023 to be considered in an uptrend, and market volatility would have to be greatly reduced.

It is necessary to clarify, repeat and emphasize that we must not lose our temper, and that we must maintain perspective, because most people are exhausted after a 2022 of constant decline and continuous downward trend, so out of desperation, it is easy to play "forward position" trying to anticipate events. People want to believe that we are already entering the bullish trend of Bitcoin, and as with any other asset, we must be very clear about everything, and see it in the most objective way possible, because otherwise, we commit the risk of investing or trade in an inconvenient point and in an inappropriate way, which would lead us to lose our money. And we certainly don't want that to happen, right?

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We must bear in mind that although volatility has always been a characteristic factor of Bitcoin, the reality is that at the moment the price and trend of Bitcoin are at a point of extreme volatility (perhaps much higher than usual). So lets be careful.

My hope is that Bitcoin enters an uptrend in 2023, because this will be extremely positive, and because when it happens, almost every other cryptocurrency on the market will also turn bullish. But until the Bitcoin chart and the price confirm it without a doubt, I will continue to be careful about it.

What do you think about the topic discussed? Please comment.

_{Gif created by @piensocrates}