- Bitcoin is ready for almost the best trading quarter in 2 years.
- The leading cryptocurrency is far surpassing stock performance.
- BTC is in a good position for more gains in Q2 2023.
With a gain of approximately 70%, Bitcoin is closing its best quarter since March 2021, when it showed a 103% increase.
This is far ahead of the S&P 500’s 5.5% annual increase, the Nasdaq 100’s 19% increase, and the iShares 20+ Year Treasury Bond ETF’s 5.3% increase.
BTC Finding Its Place
Bitcoin is preparing to close the first financial quarter with almost the best three-month performance in two years. The top currency appears to close Q2 2023 with a price increase of approximately 70%.
Other asset classes, like stocks, have fallen behind Bitcoin’s lead. Bitcoin has far surpassed the current 5.5% performance of the S&P 500. Since starting Q2 2023 with a 19% price increase, Bitcoin has gained more than three times that amount.
The last quarter of 2022 was tough for Bitcoin, losing about 15% of its value. Factors like a bad macroeconomic environment, the Terra (LUNA) crisis, and crypto fears affected Bitcoin’s overall performance throughout 2022.
This year, Bitcoin has remained resilient. Despite the collapse of two major banks associated with cryptocurrencies, Silvergate and Signature Bank, the idea that the Federal Reserve (Fed) needs to enter the “QE Light” process and expand its balance sheet and add liquidity has benefited Bitcoin.
The recent signs that the Fed’s interest rate hike cycle is nearing its end have also been positive for Bitcoin. Less dramatic interest rate increases in Q2 2023 could support the value of the top cryptocurrency.
Bitcoin’s response to Binance showed that the asset is not tied to just one exchange, which is encouraging for the industry.
A benchmark to watch closely in Q2 2023 is the price correlation between Bitcoin and Gold.
The 30-day correlation between the two assets rose above 0.3 this month, the highest in the last 12 months. The ongoing bullish technical setup for Gold is definitely a positive sign for future price increases.
If Bitcoin continues to maintain this price correlation with Gold, there is a higher likelihood of further gains in the coming weeks.
Total BTC Holders Slowly Increasing
A very positive development for Bitcoin this quarter was the sharp increase in the Total Holders metric on the Santiment blockchain forensics platform.
Since the beginning of Q1 2023, the Total Holders metric for Bitcoin has increased by over 2.15 million, a 5% increase to 45.74 million.
If the trend of increasing total Bitcoin holders continues in Q2 2023, it could be easy to make more gains in the coming days.
Bitcoin Price Prediction: Explosion Towards $34,000
The Gold Cross on the daily timeframe continues, indicating a buy signal for Bitcoin and showing strong potential for gains in the future.
The Gold Cross occurs when the 50-day moving average crosses above the 200-day moving average. The chart below shows that Bitcoin is still in the early stages of the Gold Cross.
The last Gold Cross occurred on September 14, 2021. The BTC/USD pair gained about 50%, rising from $46,000 to $69,000.
Since the current Gold Cross has given Bitcoin about a 29% gain, if BTC matches the previous Gold Cross gains and gains another 21%, a rally up to approximately $34,000 could be possible.
However, if bears take control and the Bitcoin price falls below the week’s low of $26,700, expect a bigger drop before cutting losses and it could fall to $24,500.
Source: CoinOtag.Com | Content is not investment advice, CoinOtag readers should do their own research when investing. CoinOtag is not responsible for any gains or losses.
