Bitcoin (BTC<\/a>) is facing a \u201cbottoming candle\u201d in 2023, but BTC price action is still more than able to surprise the market.<\/p>\n In a tweet on Jan. 11, popular trader and analyst Rekt Capital predicted<\/a> that BTC\/USD could see \u201cdecent upside\u201d this year.<\/p>\n Analyzing Bitcoin\u2019s four-year market cycles around block subsidy halving events<\/a>, Rekt Capital drew attention to 2023 being the deadline for its next \u201cbottoming candle.\u201d<\/p>\n With the next halving due in 2024, the coming 12 months should see a price floor, followed by a rally as the event draws nearer.<\/p>\n 2024 thus forms the fourth candle in Bitcoin\u2019s current cycle, and 2023 the third.<\/p>\n \u201cCandle 3 is a Bottoming Candle in the BTC Four Year Cycle. But it can still generate decent upside,\u201d Rekt Capital commented.<\/p>\n The scope for Bitcoin to take traders by surprise is clearly visible in the four-year cycle chart. <\/p>\n \u201cCandle 3 in 2015 saw a +234% move. Candle 3 in 2019 saw a +316% rally,\u201d he continued.<\/p>\n \u201cCandle 3 in 2023 may see stronger upside than most think.\u201d<\/p><\/blockquote>\n Certain other on-chain observations have led market participants to similarly optimistic conclusions.<\/p>\n Among them, the ratio of unrealized losses held by BTC hodlers continues to eke out a \u201ccapitulation\u201d phase, according to a dedicated indicator monitoring the status quo.<\/p>\n \u201cThese have been the most profitable times to accumulate Bitcoin. The net unrealized profit\/loss is still in deep capitulation terrority,\u201d trading and analytics account Game of Trades wrote<\/a> on Twitter on Jan. 11.<\/p>\n Given the current macroeconomic environment, however, rising from the ashes may demand considerable luck when it comes to suppressed crypto asset prices.\u00a0<\/p>\n Related:\u00a0BTC price 3-week highs greet US CPI \u2014 5 things to know in Bitcoin this week<\/a><\/em><\/strong><\/p>\n With the United States Federal Reserve still raising interest rates as inflation abates, concerns now focus on long-term policy implications.<\/p>\n What could afflict sentiment next, analysts including Reventure Consulting founder and CEO Nick Gerli say, is not inflation but deflation.\u00a0<\/p>\n Commenting on a chart of U.S. savings trends, Gerli\u00a0warned<\/a>\u00a0on Jan. 10 that conditions were ripe for a repeat of the 2008 Global Financial Crisis (GFC) in terms of recession.<\/p>\n \u201cThe Savings Rate just collapsed down to 2.2%, the lowest level ever,\u201d he revealed. <\/p>\n \u201cMeans Americans are running out of money. Last time it was this low was 2006-07. Right before GFC. Major Recession Warning. Expect a big decline in consumer spending in 2023.\u201d<\/p><\/blockquote>\n Jan. 12 will see the first U.S. Consumer Price Index (data release of 2023, and bets are already in<\/a>\u00a0as to how Bitcoin will react.<\/p>\n The views, thoughts and opinions expressed here are the authors\u2019 alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.\n<\/p>\n<\/div>\nChart teases serious Bitcoin upside potential<\/h2>\n
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2023 macro climate echoes GFC, warns analyst<\/h2>\n
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