The crypto market has been on an upward trend since the beginning of the year 2023, attracting a lot of attention from investors and traders alike. However, the month of April 2023 saw the market experience its first red month. Bitcoin still remains the leading cryptocurrency by market cap and continues to influence the prices of other altcoins. However, the start of the month of May 2023 has not been kind to Bitcoin prices, with reports of a significant crash. Will Bitcoin crash to 20K? Let’s analyze in this Bitcoin price prediction article.
Is Bitcoin BETTER than the US Dollar?
In order to compare two things, we need to make sure that they belong to the same category. It’s like comparing apples to metal (not even oranges). However, if we’re talking about holding US dollars and holding Bitcoin for the long term, we can definitely say that the latter is better.
Bitcoin and its decentralized nature. The total supply of Bitcoin is capped at 21 million, which means that once all the coins have been mined, there will be no more Bitcoin created. In contrast, the US dollar is printed continuously by the Federal Reserve, leading to inflation and a decrease in the value of the currency over time. Bitcoin’s fixed supply ensures that it is a deflationary asset, meaning that it may increase in value over time due to its limited availability. Additionally, Bitcoin’s decentralized nature means that it is not controlled by any government or central authority, making it more resistant to political or economic instability. As a result, holding Bitcoin for the long term may provide a potential hedge against inflation and a store of value in uncertain times.
Bitcoin Price Analysis: Why did Bitcoin Crash?
It is no surprise that the 30K price mark represents a strong resistance for Bitcoin prices. In fact, when Bitcoin was stuck around 19K, the 20K also represented a resistance for BTC prices. However, once this price was broken higher, prices directly went on a strong uptrend and reach the next target of 30K.
Today, we are facing a similar price action, as BTC faces a resistance at 30K. Once broken higher however, we can expect prices to soar higher and eye the next target of 40K.
Bitcoin Price Prediction: Will Bitcoin crash to 20K?
The current price action of Bitcoin is not very worrisome yet. There are two support prices that aren’t broken yet, which are the prices of $28,000 and $27,000. If the latter is broken lower, we can expect BTC prices to continue to crash towards the are between 20K and 22K. However for now, we expect further consolidation around 28K and 29K, until the purchasing power in the crypto market rises.
Best way to Hold Bitcoin in 2023
We all thought that exchanges are decent companies that do proper due diligence and cash flow management. However, the recent events proved that any centralized company is prone to bankruptcy. That’s why the old saying of “not your keys, not your cryptos” is resurfacing back.