• Bitcoin is on track for its best quarter in two years, having gained 70% since the start of the year.
• The bullish momentum has been driven by a more favorable macro backdrop and improvements in Bitcoin’s on-chain health.
• Q2 could see Bitcoin rallying above $30,000 as various technical and fundamental themes may have a big impact on the price of BTC.
Bitcoin On Course For Best Quarter Since Early 2021
Bitcoin, the world’s first and largest cryptocurrency by market capitalization, is about to close out its best quarter in exactly two years. Assuming Bitcoin is able to close Friday’s session at or above current levels in the $28,200s, the cryptocurrency would have gained a massive 70% since the start of the year. Back in Q1 2021, Bitcoin doubled in price from slightly above current levels to close to $59,000 – marking Bitcoin’s best-ever quarterly closing level.
Macro Backdrop & On Chain Health
Bitcoin’s sudden return to form in 2023 comes amid a more favorable macro backdrop. Fed tightening bets have eased in recent weeks amid concerns about weakness in the bank sector which has itself also spurred a safe-haven bid for “hard money” like precious metals and proven cryptocurrencies like Bitcoin (which many refer to as digital gold). Additionally, Bitcoin’s 2023 rally has likely been driven by mean reversion and improvements in Bitcoin’s on-chain health – various technical and on-chain indicators have been flashing that Bitcoin had become oversold last year and that the bear market bottom is now likely in.
What Could Q2 Hold For BTC?
With investors wondering what Q2 might hold for Bitcoin, things are looking good for medium term technical outlook since an important bounce from its 200-Day Moving Average and Realized Price under $20K earlier this month which happened to coincide with another retest of downtrend from Q4 2021/end of Q1 2022 highs. All major moving averages point higher and all have crossed each other bullishly (21DMA > 50DMA > 100DMA > 200DMA) suggesting potential rally above $30K could be seen during second quarter with possible retest of key resistance area between $32,500 – $33K.
Fundamental Themes Impacting BTC
However as all traders know technicals aren’t everything when it comes markets so it’s also useful consider fundamental themes which could have big impact on bitcoin’s price during second quarter of 2023 such as: increasing institutional adoption; continued development/progress towards mainstream use cases; further regulatory clarity; improved infrastructure making access easier; further increase media coverage helping raise awareness etc…
In conclusion while there are no certainties when it comes predicting future prices one can make educated assumptions based upon available data points/indicators suggesting bitcoin has strong chance seeing strong gains during second quarter with potential test of resistance range around 32K– 33K before any new highs potentially established later this summer