- Historical data suggested that Bitcoin’s value will not go below a support level.
- BTC’s network activity remained robust, which was a bullish signal.
Bitcoin [BTC] displayed a promising bull rally in October, surging by 22% and finally going above $37,000. At the time of writing, BTC was trading at $36,510.30 with a market capitalization of over $713 billion.
Bitcoin’s price might not go below $30,000
If the latest analysis is to be believed, the possibility of Bitcoin going under $30,000 is slim. Therefore, this might be the right opportunity for investors to stockpile BTC ahead of another bull rally.
Willy Woo, a popular BTC analyst, recently posted a tweet revealing why BTCs might not go under that mark.
We’ll probably never see BTC going below $30k again if this on-chain pattern holds true… (8 for 8 so far)
What you see here is #Bitcoin‘s price discovery across 13 yrs. It’s a contour map the BTC supply according to the price HODLers paid for their coins, and how it changed… pic.twitter.com/7QzxDQZH3S
— Willy Woo (@woonomic) November 21, 2023
In the analysis, Willy Woo used a contour map to map the BTC supply according to the price HODLers paid for their coins and how it changed over time. The dense horizon bands are price regions where much of the supply moved between investors, reflecting a strong agreed value.
As per the tweet, whenever BTC had strong bands of agreed price while coming out of a bear market and leading into the next halving, the price never came back to retest this band of support. Put simply, investors might not see BTC’s price plummeting under $30,000 from now on.
AMBCrypto further analyzed BTC’s liquidation heatmap, which revealed that BTC’s liquidation increased sharply near the $28,000 mark twice this year. Each time, the coin’s price moved up.
Considering the strong support level, BTC might actually not go below that point in the future.
Source: Hyblock Capital
Bitcoin is preparing for a bull rally
The possibility of BTC initiating a bull run in 2024 is high, as the coin is expecting its next halving in April next year. Historically, BTC’s price has always reached new highs a few months after halving.
To put that into perspective, let’s consider the previous halving, which took place in May 2020.
Before the 2020 halving, BTC was trading somewhere between $8000 and $9000. However, only a few months later, the coin’s price skyrocketed and touched $35,000 in January 2021. The bull rally didn’t stop there, as the coin’s price reached $65,000 in April.
Source: Santiment
While BTC prepares for its next halving, its mining sector continues to flourish. AMBCrypto checked Coinwarz’ chart and found that BTC’s hashrate has been increasing consistently over several months, clearly suggesting growth.
A hike in hashrate also means a rise in the number of miners, which reflects their trust and confidence in the king of cryptos.
Source: Coinwarz
Is there anything in store in the short term?
While BTC’s future looks bright, investors’ hopes for BTC also increased. This was evident from the fact that the number of fish and shrimp wallets has increased substantially over the last few months.
Surprisingly, the number of whale addresses did not change much during the same period.
Source: Santiment
Not only accumulation, but the blockchain’s network activity also remained robust. AMBCrypto’s analysis of Santiment’s data revealed that BTC’s daily active addresses were consistent over the last three months.
Another positive signal was its high velocity. Simply put, a higher velocity means that Bitcoin was used in transactions more often within a set time frame.
Source: Santiment
AMBCrypto then took a look at BTC’s daily chart to better understand if investors should expect a price pump in the near term. As per our analysis, Bitcoin’s Relative Strength Index (RSI) registered an uptick.
Read Bitcoin’s [BTC] Price Prediction 2023-24
Its Chaikin Money Flow (CMF) also followed a similar route, increasing the chances of a price uptick.
However, not everything was perfect. BTC’s Money Flow Index (MFI) went down and was headed towards the neutral mark. The Bollinger Bands pointed out that BTC’s price entered a less volatile zone, suggesting that investors might witness a few slow-moving days.
Source: TradingView