BTC ended up falling to $10k, so the same can be expected from the $30k range. There are three conditions under which BTC price will never return to the previous support band. The approval of the Bitcoin spot ETF will have a positive impact on the adoption of cryptocurrencies.
Willy Woo, a popular analyst in the cryptocurrency community, believes that the price of the cryptocurrency with the largest market capitalization is unlikely to fall below $30,000.
At the moment, Bitcoin (BTC) has finished falling to $10,000, so the same can be expected from the aforementioned range. The expert shared these observations on Twitter.
All Conditions Are Met so that Bitcoin (BTC) Does Not Fall That Much
Woo’s analysis is based on a map of BTC supply based on the price hodlers have been paying for the coin since 2012. Horizontal bars indicate price ranges in which most of the asset supply has moved between investors. They reflect a strong agreed value.
On November 21, Woo posted the following on X (formerly Twitter):
“We’ll probably never see BTC going below $30k again if this on-chain pattern holds true… (8 for 8 so far).
What you see here is #Bitcoin’s price discovery across 13 yrs. It’s a contour map the BTC supply according to the price HODLers paid for their coins, and how it changed over time.
DENSE HORIZONTAL BANDS: These are price regions where much of the supply moved between investors reflecting strong agreed value.
PATTERN: Whenever BTC had:
(a) strong bands of agreed price
(b) coming out of a bear market
(c) and leading into the next halvening (marked in vertical bands) … the price never comes back to retest this band of support.
CONTEXT: Why “up only”? #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.”
According to the analyst, there are three conditions under which the BTC price will never return to the previous support band:
- Strong agreed value ranges.
- Leave the bear market.
- Approaching the halving.
Currently, Bitcoin meets all these conditions: the halving is scheduled for the end of April 2024 and the market is recovering from a bear market.
According to CoinGecko, the top cryptocurrency is currently trading at $37,190. In the last 24 hours, the value of BTC increased slightly, 0.2%.
How Will the Bitcoin ETF Announcement Affect BTC Adoption?
Wu also emphasized that the Bitcoin ecosystem has undergone significant changes since 2010. And so, when the cryptocurrency appeared, the BTC network had only 10,000 users. It is currently used by more than 300 million people around the world.
The expert noted that the possible approval of the first BTC spot ETF in US history will have a positive impact on the aforementioned indicators. The new tool will drive them to grow.
Previously, Bloomberg Intelligence analysts predicted that the Bitcoin ETF spot market would grow to $100 billion within a few years of its launch. Bitcoin rose 3.8% on the day to $37,430 during the Asian trading session on Thursday morning.
Matrixport specialists predicted that the BTC price will surpass the level of $56,000 if the United States Securities and Exchange Commission (SEC) makes a positive decision on the applications.
By Leonardo Perez
