The Bitcoin Price and Potential Support
The price of Bitcoin continues to push towards the upside, reaching a critical resistance near $38,000. Analysts are now looking for the support level that can withstand an increase in selling pressure. As of now, Bitcoin is trading at $37,160 with minimal movement in the last 24 hours, showing a 2% gain from the previous week. Meanwhile, Cardano (ADA) and Solana (SOL) are leading the current price action.
Bitcoin’s Historical Analysis and Potential Bottom
On-chain analyst Willy Woo made a prediction based on Bitcoin’s Cost Basis Density, examining BTC supply dynamics to determine where the cryptocurrency could resist bearish pressure. According to his findings, Woo suggested that Bitcoin may not revisit the $30,000 mark, highlighting historical trends where the cryptocurrency moved to the upside without returning to that price point for the current cycle.
Woo set three conditions to affirm this pattern: Bitcoin should be coming out of a bear market, indicating a “high agreed price,” and approaching a Halving Event, where the supply rewards for mining BTC are halved, potentially leading to supply shocks and a bull run.
The Key Factor Driving the Bull Run
Woo also emphasized the potential approval of a Bitcoin Exchange Traded Fund (ETF) as a significant catalyst for the cryptocurrency. He noted that if the US Securities and Exchange Commission (SEC) approves the product, it could lead to billions of dollars flowing into Bitcoin as a store of value technology.
While some users raised concerns about the previous prediction’s accuracy, the question remains whether Bitcoin can hold above $30,000 for the next bull cycle or succumb to unforeseen selling pressure.
Cover image from Unsplash, chart from Tradingview
Hot Take: Bitcoin’s Potential Bullish Trajectory
The analysis of Bitcoin’s historical trends and potential bottom for the current cycle provides insights into the cryptocurrency’s future trajectory. Despite concerns about selling pressure and historical accuracy, the ongoing development of Bitcoin as a store of value technology and the potential approval of a Bitcoin ETF signal continued bullish momentum for the cryptocurrency, opening new possibilities for its adoption and growth.
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