bitcoin price continues to rise and once again touched critical resistance near $38,000. The cryptocurrency could trend sideways at its current levels in the near term, leading analysts to find the support level that could resist an increase in selling pressure.
At the time of writing, bitcoin is trading at $37,160 with sideways movement in the last 24 hours. btc made a 2% gain in the previous week, while Cardano (ADA) and Solana (SOL) took the lead in the current price action.
Does bitcoin History Reveal Mega Bottom for Current Cycle?
Chain Analyst Willy Woo shared a prediction on your social media channels based on bitcoin cost base density. The analyst investigated btc supply dynamics to find where the cryptocurrency could keep the bears at bay.
Based on his conclusions, the analyst stated that it is unlikely that bitcoin will exceed $30,000 again. As seen in the chart below, every time in btc history that supply moved to long-term investors, the cryptocurrency trends higher 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 coming out of a bear market; secondly, there must be signs of an “agreed high price”; Finally, the cryptocurrency must be about to undergo a “halving event.”
During the latter, the supply rewards for mining btc are halved along with its production, often leading to “supply shocks,” according to some analysts. The halving events coincide with the btc bull run, but other analysts warned against bitcoin bull runs corresponding with the reduction of its supply.
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However, Woo claims that the possible approval of a bitcoin exchange-traded fund (ETF) could be the most important catalyst for the cryptocurrency. If the US Securities and Exchange Commission (SEC) approves the product, billions of dollars will flow into the cryptocurrency.
The analyst added:
bitcoin is far from a saturated commodity market. What we are seeing over the 13 years of this chart is widespread adoption of btc. The network had 10,000 users in 2010; Today, there are more than 300 million people who use it as a reserve of valuable technology. This is only going to go up with a spot ETF.
Most users who responded to Woo’s forecast highlighted his prediction for 2021. At the time, the analyst also set some levels that were supposed to hold against a sell-off, but quickly failed in the face of unprecedented selling pressure.
It remains to be seen if this prediction will meet the same fate or if bitcoin price can remain above $30,000 during the next bull cycle.
Cover image from Unsplash, chart from Tradingview
