Interest in crypto investing is probably near all-time lows. Sentiment in the crypto space is for sure near all-time lows. The price of Bitcoin is nowhere near its historic lows. This is a setup we like a lot. The conditions for a perfect storm in 2023 are there. We are super bullish for crypto in 2023, however there are some do’s and don’ts especially since we expect 2023 to come with bi-furcated market conditions in the crypto market. That’s why we compiled 5 cryptocurrency predictions for 2023. It helps investors understand that 2023 will be ‘crypto picking market’ (not a broad based crypto market bull). We go in more detail in our XRP forecast and Luna Classic forecast. More importantly, we continue to track the crypto market and our cryptocurrency predictions in our crypto investing research service.
Before looking at our 5 cryptocurrency predictions for 2023 we want to set the stage by this must-see chart: BTC priced in terms of the Nasdaq.
You can see the point immediately: a potentially bullish reversal is in the making, one that looks a lot like the one in Q1/2019 right before BTC went up 4x.
Now, we are not saying that a 4x rise in BTC is imminent. In the end, if the Nasdaq decides to move lower, it will push BTC and crypto lower as well.
However, we clearly see that a flat price action in BTC might set the stage for a bullish period especially if/when the Nasdaq will decide to move higher.
We like this chart a lot.
Our 5 cryptocurrency predictions for 2023 hold true provided the BTC to Nasdaq ratio will resolve higher. We believe it will resolve higher, this is why.
1. Cryptocurrency prediction 2023: A bullish bias with multiple ‘golden’ weeks
The first of our 5 cryptocurrency predictions for 2023 is that BTC will move higher in 2023, with a base case target of 40k which is the 90 week moving average (see upper pane of the long term BTC chart shown below).
This next chart shows us not only the long term moving average of BTC. We notice a consistent behavior in the past when it comes to the interaction between BTC and its moving average.
Equally important is the correlation between the USD and BTC. It is clear how strong the negative correlation is between both assets.
We believe that the USD is not far from setting a top. Whenever the USD decides to soften, which is very likely to happen in 2023, we can see a strong move higher in BTC.
Here is one more long term BTC chart that will help us understand whether BTC will respect its 2017 levels as support: the 5 year rising trendline has to be respected. If BTC continues to trade above this long term trendline, in 2023, it should confirm it as a long term support trend and confirm our bullish crypto 2023 thesis.
2. Cryptocurrency forecast 2023: Unicorns in Web3
Our 2nd of the 5 cryptocurrency predictions for 2023 is about unicorns: we expect 2023 to bring a few unicorns in the Web3 space.
What are unicorns?
Unicorns, as per our own definition, are cryptocurrencies that become multi-baggers in one and the same year. Think Solana in 2021 and DeFi tokens back in 2020. Note that have hit multiple ten-baggers in our crypto investing research service, think LINK in 2020 and Theta in 2020/2021.
In which space do we expect the unicorns in 2023? In the broader Web3 space:
- Web3 and gaming.
- Web3 and music.
- Web3 and collectibles.
The common theme among all of these is the usage of Web3 and NFTs in areas like gaming and music.
3. Cryptocurrency prediction 2023: focus on Layer1
Here is the third of 5 cryptocurrency predictions for 2023: a few select Layer1 tokens will do well and the tokens in their ecosystem will outperform in that same period of time.
What is Layer1? We have 2 definitions for you:
The Layer1 definition as per Coinmarketcap:
A layer-1 blockchain is a set of solutions that improve the base protocol itself to make the overall system a lot more scalable. There are two most common layer-1 solutions, and these are the consensus protocol changes as well as sharding.
The Layer1 definition as per Binance Academy:
A layer-1 network is another name for a base blockchain. BNB Smart Chain (BNB), Ethereum (ETH), Bitcoin (BTC), and Solana are all layer-1 protocols. We refer to them as layer-1 because these are the main networks within their ecosystem. In contrast to layer-1, we have off-chains and other layer-2 solutions that are built on top of the main chains. In other words, a protocol is layer 1 when it processes and finalizes transactions on its own blockchain. They also have their own native token, used to pay for transaction fees.
How to spot which Layer1 token is ready to benefit from a bullish momentum trend?
We recommend to check the token priced in BTC and look for a bullish reversal.
Here are a few illustrations which are not shared a buy recommendation. We are not saying that all these Layer1 tokens will outperform in 2023. It certainly may happen that some of these will outperform the market in 2023.
Polkadot priced in BTC is a bullish reversal in the making, not confirmed yet.
Algorand priced in BTC is a bullish reversal in the making, more matured than the one above.
Also in the smaller cap space we start seeing some really constructive setups for 2023.
Compound priced in BTC is close to confirming a bullish reversal.
COTI priced in BTC starts looking really good here.
4. The great return of XRP in 2023
Here is one more cryptocurrency prediction for 2023: XRP will be back and stronger than any year since 2017.
The long term XRP chart has a beautiful W reversal with a higher low in 2022. Rest rest re-assured, once 0.95 is cleared, XRP will move in one straight line to 3 USD as explained in great detail in our XRP Price Forecast 2023.
Note that the XRP chart priced in BTC has an even more bullish long term setup. Once 0.00004 is cleared we see a monster rally in XRP developing. The green arrow on the next chart is when we sent a special XRP edition to our premium crypto members, the timing was extremely accurate.
5. Meme coin prediction of the year 2023: Luna Classic
The last of our 5 cryptocurrency predictions for 2023 is the meme coin of the year: Luna Classic.
The bullish reversal on the Luna Classic chart is absolutely awesome. Equally important, Luna Classic became a true decentralized project since the collapse of Luna. Both contribute to a promising very long term future. We believe that Luna Classic may be a stronger meme coin than Doge and Shiba in 2023.
We pride ourselves on being the first crypto investing research service in the world with more than 6 years of experience analyzing the crypto market. We hit many 10-baggers for our members in the past, not only in 2017 but also in 2020 and 2021. You can join us on this ride, as the secular bull market is going to move to a climax in 2023.
Our Must-Read 2023 Predictions
We recommend you read our 2023 predictions as they are very well researched:
A Silver Price Forecast For 2023
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Silver Stocks Outlook For 2023
Commodities Outlook 2023
Uranium Market Outlook 2023: Bullish Bias
Which Sectors Will Be Bullish In U.S. Markets In 2023?
2023 Market Trends
5 Investing Tips For 2023
A Very Bullish Graphite Stocks Forecast For 2023
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