Analyst Sets $30,000 Floor For Bitcoin, But Can We Forget 2021’s Misfire?
November 21 2023 - 10:00AM
NEWSBTC
The price of Bitcoin presses on towards the upside and, once again,
touched a critical resistance close to $38,000. The cryptocurrency
could trend sideways at its current levels in the short term,
leading analysts to find the support level that could withstand a
spike in selling pressure. Related Reading: XRP Price: Cup And
Handle Pattern Hints At Short-Term 208% Surge As of this writing,
Bitcoin trades at $37,160 with sideways movement in the last 24
hours. BTC held a 2% profit the previous week, while Cardano (ADA)
and Solana (SOL) took the lead in the current price action. The
History Of Bitcoin Reveals Mega Bottom For The Current Cycle?
On-chain analyst Willy Woo shared a prediction on his social media
channels based on the Bitcoin Cost Basis Density. The analyst
investigated the BTC supply dynamics to find where the
cryptocurrency could hold off the bears. Based on his findings, the
analyst stated that Bitcoin is unlikely to revisit the $30,000. As
seen in the chart below, each time in BTC’s history that the supply
moved to long-term investors, the cryptocurrency trends to the
upside without returning to this price point: $30,000 for the
current cycle. The analyst set 3 conditions to confirm this
pattern: first, Bitcoin must be exiting a bear market; second,
there must be signs of a “high agreed price;” finally, the
cryptocurrency must be about to go through a “Halving Event.”
During the latter, the supply rewards for mining BTC are cut in
half along with its production, which often leads to “supply
shocks,” according to some analysts. Halving events coincide with
the BTC bull run, but other analysts warned against corresponding
Bitcoin bull runs with the reduction in its supply. The Biggest
Narrative Driving The Bull Run However, Woo claims that the
potential approval of a Bitcoin Exchange Traded Fund (ETF) might be
the more significant catalyst for the cryptocurrency. If the US
Securities and Exchange Commission (SEC) approves the product,
billions of dollars flow into the cryptocurrency. The analyst
added: Bitcoin is far from a commodity market at saturation. What
we’re seeing across the 13 yrs of this chart is BTC’s widespread
adoption. The network had 10,000 users in 2010, today there’s well
over 300m people using it as a store of value technology. This is
only going to climb with a spot ETF. The majority of users replying
to Woo’s forecast highlighted his 2021 prediction. At that time,
the analyst also set some levels that were supposed to hold against
a selloff but quickly folded against unprecedented selling
pressure. Related Reading: Bitcoin About To Smash The $38,000
Barrier – Decoding the Next Moves It remains to be seen if this
prediction will suffer the same fate or if the Bitcoin price can
hold above $30,000 for the next bull cycle. Cover image from
Unsplash, chart from Tradingview
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