The fundamental parameters of the Bitcoin blockchain do not support the recent drop in the price. Cryptocurrency market analysts foresee that there will be a rebound in the short term.
Amid the downtrend from its all-time high of November 2021, the price of Bitcoin has recovered by 6.2%. Although it hit a low of USD 33,000 on January 24th, it has rebounded moderately to trade at around USD 38,689.
The US Federal Reserve (FED) recently announced the increase in interest rates scheduled for next March. That was one of the primary drivers of the BTC price over the last week.
The drop in the value of BTC last week marked a 50% retracement from the all-time high of USD 68,789. The subsequent recovery in the price in the following days has taken its price to 45% below its record price.
The Bitcoin Price Could Return to USD 30,000
If the downward trend in the value of Bitcoin continues, it could go back to USD 30,000. Many analysts view that level, reached after the price correction in mid-2021, as new price support.
The USD 30,000 level seen in January and July 2021 has been the most critical level over the last year.
Curiously, that price level marked the start of the two hugest bullish runs of 2021, which resulted in a Bitcoin price return of over 100%.
Featured Weekly Chart of the Price of Bitcoin
A report from Crypto.com shows the growth in the number of cryptocurrency holders in 2021. It states that 3.83% of the world population, equivalent to around 295 million people, owned Bitcoin or other cryptocurrencies at the end of the year.
The weekly chart shows a 3-fold increase in cryptocurrency holders over the last year. Those already interacting with cryptocurrencies went from 106 million to 295 million, representing a 178% increase in 12 months.
Extrapolating that growth rate, it may reach the mark of 1,000 million cryptocurrency holders at the end of 2022. For that to happen the growth in the number of holders is 239% or higher will be enough.
Willy Woo Believes in a Possible Short-Term Bitcoin Rebound
The technical fundamentals of the Bitcoin blockchain did not support the drop in the price of the cryptocurrency in the last week. According to Willy Woo, this drop may be rather a sign of re-accumulation in the market.
The renowned analyst explained that long-term holders had sold their coins at a much lower level than in the correction of May to July 2021.
The Bitcoin Price Could Exceed USD 1 Million in 2030
A recent report from Ark Investment Management states that the price of Bitcoin could exceed USD 1 million by 2030.
According to the study, the distribution of the market capitalization will place the value of the cryptocurrency at USD 1.36 million within ten years. That price per BTC would make the market capitalization of Bitcoin increase 25.9 times. It would go from USD 1.1 trillion in 2021 to USD 28.5 trillion in 2030.
By Alexander Salazar
