• Bitcoin is said to be using 2023 to rebalance inefficiencies produced in 2022 when it moved from $25,200 to $32,853.

• According to analysts, the asset could record a 15 to 26 percent pullback before staging any bull run.

Market data indicates that Bitcoin (BTC) currently has a bullish sentiment. However, its seven-day growth has been marginal with just a  1 percent price surge. As of press time, the digital asset was trading at $29,232.09 with a good chance of getting back to $30k when it breaks into a critical resistance level at $29,539.90. However, there is another possibility of falling towards $26k once it goes past its support level of $28,650.00. 

Analysts have observed that Bitcoin could go all the way to trade at $50k or more, but would first go through a series of pullbacks. A close look at its third-quarter chart indicates that the asset is relatively bearish. Analysts believe that this is a perfect entry point into the market and the best time to accumulate.

The current market situation started slowly from the second quarter of 2023 when the asset had just 7 percent returns to produce a local top at $31,500 before recording a decline of 4.52 percent. The market chart at the $31k trading price hinted at a potential trend reversal. Truly, Bitcoin saw an 8 percent pullback to trade at $29,078. 

Bitcoin Rebalancing 2022 Inefficiencies

Analysts have also made an interesting observation concerning the performance in the second quarter of 2022. According to them, the Bitcoin price staged a mini rally to climb up the price curve from $25,200 to $32,853, producing inefficiencies. This is a term used to describe Fair Value Gap (FVG) which is created in situations where there is an imbalance in the order flows.

The market, therefore, attempted to rebalance this inefficiency in 2023 according to an analysis of the three months Bitcoin price chart. This is also evident from the movement of Bitcoin from January 2023 to the second quarter higher. After correcting the 2022 inefficiencies, the asset seeks to replicate this with the remaining FVG. 

Another imbalance was said to have been created when the asset fell from $24,777 to $21,473. Considering the fact that Bitcoin has rebalanced the FVG to the upside and also collected the buy stop liquidity, it is likely that the asset would record a 15 percent to 26 percent fall.

This could set a new support level at $15,443. Once the sellers drive the price below this point, the price could trade at $13,000 and $11,898. However, all of these price points would never be seen when the market extends its rally and sweeps the buy-side liquidity above $47,448 and $48,200.

Some Market Players Bullish on BTC

Recently, a crypto analyst behind the InvestAnswers YouTube channel hinted that the low volatility of the Bitcoin price is a sign of a bull market. According to him, the asset stages a massive run every single time it records a period of low liquidity. Interestingly, the current Bitcoin liquidity is the second-lowest ever.

The last time it went that low was in 2017. After that, the price surged from $3,200 to $19,000. Several other industry key players including banking and financial services firm Standard Chartered have been very bullish on Bitcoin. According to Standard Chartered, the price could hit $50k this year, and $120,000 in 2024. 

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