Willy Woo Analyzes BTC’s Cost Basis Density Map for Price Stability and Support Zones
If historical trends continue, Bitcoin (BTC) could maintain its value over $30,000, observes Onchain analyst Willy Woo.
By analyzing a cost basis density map of Bitcoin (BTC), Woo stated that if the present pattern continues, “we’ll probably never see Bitcoin going below $30k again.” The map shows BTC’s price discovery over 13 years and outlines the supply of Bitcoin according to the price HODLers paid for their coins and how it changed over time.
Horizontal bands in Woo’s chart represent prices where numerous Bitcoin (BTC) holders paid similar amounts for their coins. After a bear market, if Bitcoin reaches one of these levels before a halving event, the price typically does not fall back to that support level.
Woo states that Bitcoin’s price only rises due to rapid adoption. In the previous decade, Bitcoin (BTC) user numbers grew from 10,000 to more than 300 Million. More institutional investors and a spot ETF would only bolster this growth, predicts Woo. Nonetheless, while historical trends can provide insight, they don’t guarantee future price patterns because external factors can significantly impact BTC’s price.
Market Fluctuations and Historical Patterns
Numerous exceptions exist where BTC’s price has contradicted predictions based on historical models and patterns, such as the March 2020 price fall. Nevertheless, current trends consistently reveal zones of price discovery, pre-halving reaccumulation, and periods of price consolidation before whole lot of upward movements in BTC’s value
Hot Take
In light of Willy Woo’s analysis, Bitcoin (BTC) may continue to see supportive price zones over $30K, but predicting its value movements remains an unpredictable challenge.
Benito Cormi, the brilliant crypto analyst who has made waves in the world of cryptocurrency. With his razor-sharp analytical skills and deep understanding of the digital asset landscape, Benito has become a trusted figure in the industry and remains at the forefront, tirelessly researching and analyzing market trends to help individuals and businesses make informed decisions in this dynamic landscape.
