The price of Bitcoin continues to push towards the upside, and has once again touched a critical resistance level close to $38,000. Analysts are predicting that the cryptocurrency could trend sideways at its current levels in the short term, as they seek to identify the key support level that could withstand a spike in selling pressure.
As of the time of writing, Bitcoin is trading at $37,160, exhibiting sideways movement over the last 24 hours. Over the previous week, Bitcoin held a 2% profit, while Cardano (ADA) and Solana (SOL) took the lead in the current price action.
BTC’s price trends to the upside on the daily chart. Source: BTCUSDT on Tradingview
The History Of Bitcoin Reveals Mega Bottom For The Current Cycle?
On-chain analyst Willy Woo shared a prediction on his social media channels based on the Bitcoin Cost Basis Density. The analyst delved into the supply dynamics of Bitcoin to determine where the cryptocurrency could hold off the bears.
Based on his findings, the analyst suggested that Bitcoin is unlikely to revisit the $30,000 level. He pointed to historical data, indicating that each time in Bitcoin’s history when the supply moved to long-term investors, the cryptocurrency has trended to the upside without returning to the $30,000 price point for the current cycle.
Source: Willy Woo via X
Woo set three conditions to confirm this pattern: First, Bitcoin must be exiting a bear market; second, there must be signs of a “high agreed price;” and finally, the cryptocurrency must be about to go through a “Halving Event.”
During a halving event, the supply rewards for mining Bitcoin are cut in half, leading to a reduction in its production. This has often resulted in “supply shocks,” according to some analysts. Halving events typically coincide with a Bitcoin bull run, although other analysts have cautioned against correlating Bitcoin bull runs with the reduction in its supply.
The Biggest Narrative Driving The Bull Run
Woo claims that the potential approval of a Bitcoin Exchange Traded Fund (ETF) could be the most significant catalyst for the cryptocurrency. If the US Securities and Exchange Commission (SEC) were to approve the ETF, it could lead to billions of dollars flowing into Bitcoin.
The analyst added, “Bitcoin is far from a commodity market at saturation. What we’re seeing across the 13 yrs of this chart is BTC’s widespread adoption. The network had 10,000 users in 2010, today there’s well over 300m people using it as a store of value technology. This is only going to climb with a spot ETF.”
Many users responding to Woo’s forecast cited his 2021 prediction, which did not hold against unprecedented selling pressure. It remains to be seen whether this prediction will suffer the same fate or if the Bitcoin price can hold above $30,000 for the next bull cycle.
In conclusion, Bitcoin’s price continues to exhibit upward momentum and faces a critical resistance level at $38,000. Analysists are closely monitoring the cryptocurrency’s price movement and are focusing on identifying key support levels against significant selling pressure. Additionally, Willy Woo’s prediction based on historical Bitcoin trends suggests that the cryptocurrency is unlikely to revisit the $30,000 price level for the current cycle. Furthermore, he believes that the potential approval of a Bitcoin ETF could be a major catalyst for the cryptocurrency’s future growth.