Bitcoin Will Likely Never Dip Below $30,000 Again, Says On-Chain Analyst
According to renowned on-chain analyst Willy Woo, Bitcoin is likely to maintain its value above $30,000 if a specific pattern that has remained consistent since 2012 continues to hold true. Woo has accumulated a large following of one million on the social media platform X, keeping a close eye on Bitcoin’s cost density map.
This map shows levels where long-term Bitcoin holders purchased their coins and depicts how these levels have evolved over time. Woo believes that a pattern has arisen, outlining areas where investors are in strong agreement regarding the value of BTC. He emphasizes that there are currently eight price levels that exhibit “strong agreed value,” and Bitcoin has never retested these areas once it has moved away.
The On-Chain Pattern
Woo asserts that this on-chain pattern of “dense horizontal bands” only occurs when Bitcoin has experienced strong bands of agreed price, emerging from a bear market, and moving towards the next halvening, as indicated by vertical bands. According to Woo, the resulting price has never revisited these bands of support. Contextually, the widespread adoption of Bitcoin as a store of value technology has helped to drive prices, with the network evolving from 10,000 users in 2010 to over 300 million people using it today.
When observing Woo’s chart, the first two areas of strong agreed value are below $10, with the next three below $1,000. The sixth, seventh, and eighth price levels are all below $20,000, with the potential ninth area falling below $30,000. As of now, Bitcoin is trading for $36,113. It is, therefore, crucial to monitor the price action and stay updated with real-time alerts and information on social media platforms.
Hot Take
According to Willy Woo, the pattern on the cost density map indicates that Bitcoin’s value will likely never fall below $30,000 again if this on-chain pattern holds true. With a significant increase in adoption, the price of Bitcoin is expected to continue to climb, especially with the potential introduction of a spot ETF. This signals positive news for Bitcoin holders and potential investors, showing that the cryptocurrency may hold strong value in the long term.
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