- Historical data suggests that Bitcoin’s value will not fall below a support level.
- BTC’s network activity remained robust, which was a bullish signal.
Bitcoin [BTC] enjoyed a promising upward rally in October, rising 22% and eventually surpassing $37,000. At the time of writing, BTC trade at $36,510.30 with a market cap of over $713 billion.
The price of Bitcoin is unlikely to fall below $30,000
If the latest analysis is to be believed, the likelihood of Bitcoin falling below $30,000 is slim. Therefore, this could be the right opportunity for investors to accumulate BTC ahead of another bull rally.
Willy Woo, a popular BTC analyst, recently posted a tweet revealing why BTC might not fall below this mark.
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We’ll probably never see BTC go below $30,000 again if this on-chain pattern holds true… (8 for 8 so far)
What you see here is the price discovery of #Bitcoin over a 13 year period. It’s a contour map of BTC supply according to the price HODLers paid for their coins and how that has changed… pic.twitter.com/7QzxDQZH3S
– Willy Woo (@woonomic) November 21, 2023
In the analysis, Willy Woo used a contour map to map BTC supply based on the price HODLers paid for their coins and how this has changed over time. The dense horizon bands are price regions where much of the supply moved between investors, reflecting strong agreed value.
According to the tweet, when BTC had strong agreed price bands when exiting a bear market and moving into the next halving, price never came back to retest this support band. Put simply, investors may not see it BTCThe price drops below $30,000 from now on.
AMBCrypto further analyzed BTC’s liquidation heatmap and showed that BTC’s liquidations have risen sharply near the $28,000 mark twice this year. Each time the price of the coin increased.
In fact, given the strong support level, BTC may not fall below this point in the future.
Source: Hyblock Capital
Bitcoin is preparing for a bull rally
The likelihood of BTC entering a bull market in 2024 is high as the coin expects its next halving in April next year. Historical, BTCThe price always reached new highs a few months after the halving.
To put this into perspective, let’s look at the previous halving that took place in May 2020.
Before the halving in 2020, BTC was trading somewhere between $8,000 and $9,000. However, just a few months later, the price of the coin skyrocketed, reaching $35,000 in January 2021. However, the bull rally did not end there as the price of the coin reached $65,000 in April.
Source: Santiment
As BTC prepares for the next halving, its mining sector continues to thrive. AMBCrypto verified Coinwarz’ diagram and noted that BTC’s hash rate has been steadily increasing for several months, clearly indicating growth.
An increase in hash rate also means an increase in the number of miners, reflecting their trust in the king of cryptos.
Source: Coinwarz
Is there anything to expect in the short term?
While BTC’s future looks bright, investors’ hopes for BTC have also increased. This was evident from the fact that the number of fish and shrimp wallets has increased significantly in recent months.
Surprisingly, the number of whale addresses has barely changed over the same period.
Source: Santiment
Not only the accumulation but also the network activity of the blockchain remained robust. AMBCrypto’s analysis of Santiment’s data revealed this BTCs Daily active addresses have been consistent over the past three months.
Another positive signal was the high speed. Simply put, higher speed means that Bitcoin was used for transactions more frequently within a set time frame.
Source: Santiment
AMBCrypto then took a look at BTC’s daily chart to better understand whether investors should expect a price increase in the near future. According to our analysis, Bitcoin’s Relative Strength Index (RSI) recorded an increase.
To read Bitcoins [BTC] Price prediction 2023-24
Its Chaikin Money Flow (CMF) also followed a similar path, increasing the chances of a price increase.
However, not everything was perfect. BTCThe Money Flow Index (MFI) fell and headed towards the neutral mark. The Bollinger Bands indicated that the price of BTC has entered a less volatile zone, suggesting that investors could experience a few days of slow movement.
Source: TradingView
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