Note that there is plenty of positivity around Bitcoin right now. Still, the cryptocurrency continues to remain fairly stable after a serious rise. The second-tier Lightning Network also set a capacity record today – that is, the number of BTCs used in it.

As noted by analysts at The Block, we are talking about 5,490 coins. At the beginning of 2022, the corresponding figure was 3,550 BTC.

Lightning Network based on Bitcoin blockchain

What will happen to the Bitcoin exchange rate

On the scale of the 1-week chart, Bitcoin could go horizontal in the channel as the cryptocurrency price failed to consolidate above $23,400. Simply put, the coin has failed further upside, which means that it will now need more time to resume growth.

This is the conclusion reached by a popular crypto analyst nicknamed Rekt Capital. Here is the corresponding image, which outlines the trader’s point of view.

Forecast from Rekt Capital

The nearest important support level is the $20,000 line. This is the Bull Run 2017 high for Bitcoin, so many traders keep an eye on the area around the line. In other words, this level is considered a kind of starting point for a new phase of BTC growth, as the first cryptocurrency has never fallen below the record from the previous bull run until 2022. Accordingly, traders are now counting on history repeating itself against the BTC collapse that occurred earlier.

A trader nicknamed Credible Crypto believes that a pullback to the $20,000 level is a possible scenario. Here’s his rejoinder.

Some buy orders were executed during the recent move down (green zone on the chart), but most orders below were cancelled (red zone). If we continue the decline, the area between $19,000 and $21,000 looks like a logical place for a rebound.

Credible Crypto chart

Traditionally, we will note that this is only a possible version of the development from a person who can easily make a mistake. Therefore, it should be treated as an inaccurate forecast, but crypto investors should traditionally rely only on their own analysis of the market situation. At least then they won't have to blame someone for their losses.

A small 25 basis point increase in the US benchmark lending rate was a major contributor to the previous local upswing. Although Federal Reserve Chairman Jerome Powell has so far ruled out a rate cut this year, some experts believe that the US Federal Reserve may well take such a step if new inflation data proves to be lower than before.

So far analysts agree that the peak of inflation is behind us. Although the effects of a key rate hike of a massive 75 basis points in the second half of 2022 will still be felt, this action might be enough to solve the problem in the global economy. The latter, it may be recalled, were triggered, among other things, by the massive money printing in 2020 due to the pandemic. At that time, many people stopped working locally, so the authorities were forced to support the population financially - and for that they now have to pay.

Inflation in the US

According to Cointelegraph’s sources, Bitcoin miners’ reserves have started to decline at an accelerated rate in the last 30 days – a clear sign that they are selling BTC little by little. In the mining space, however, the situation remains relatively stable, as the rise in the price of Bitcoin is no longer forcing miners to actively sell coins, as it was in 2022.

The balance of miners’ wallets


For example, representatives of major mining company Riot Blockchain announced record bitcoin mining volumes in January. The first month of 2023 added 740 BTC, or roughly $17 million, to their stock of digital assets.

Last week, a miner called Marathon announced the sale of 1,500 BTC worth $35.1 million. According to company spokesperson Charlie Schumacher, Marathon management wants to ensure liquidity by doing so. There's no serious need for that, well before that the company hadn't sold a single bitcoin in two years. By the way, it made 687 BTC in January.


The market growth has also led to optimistic sentiment among investors with balances as low as 0.1 BTC. Data from Santiment shows that since Jan. 13, 2023 – when Bitcoin rose above $20,000 – the number of wallets with balances up to 0.1 BTC has grown by about 620,000 units. At the time of writing, the total number is hovering around 39.8 million units.

This is the highest level since November 2022, when cryptocurrency exchange FTX experienced a collapse and triggered a market panic. With this in mind, it can be assumed that investors are gradually forgetting about the situation and are looking at digital assets as a positive.

Increase in the number of cryptocurrency wallets with balances below 0.1 BTC

Overall, cryptocurrency enthusiasts are now left to keep a close eye on the macro economy, which is a major factor in the direction of market movement. In 2022, many large crypto companies went bankrupt, so it is unlikely that by today there are still financially insolvent players left to spoil the picture with their collapse. However, the court cases surrounding such companies are still ongoing, and a sale of their assets given the bankruptcy will take place in the future.


We believe that Bitcoin situation once again demonstrates how dramatically investor sentiment changes after the cryptocurrency rises. In this case, BTC rose above $20,000 and attracted quite a few buyers. At the same time, not so long ago they could buy the cryptocurrency in the area of $16 thousand. So there are still plenty of first-time investors in the world, and digital assets will be of serious interest as prices continue to move.