Analyst Sets $30,000 Floor For Bitcoin, But Can We Forget 2021’s Misfire?

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.

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.

How To Get Free Crypto  

BTC’s price trends to the upside on the daily chart. Source: BTCUSDT on Tradingview

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.

Source: Willy Woo via X

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.

Coinbase Banner  

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.

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

Go to Source
Author: Reynaldo Marquez

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

FreeBitcoin Banner  

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

You May Also Like

More From Author

This site uses Akismet to reduce spam. Learn how your comment data is processed.