Popular analyst in the crypto community, Willy Wu, believes that the price of the first cryptocurrency is unlikely to fall below $30 thousand.
Currently, Bitcoin (BTC) has completed its pullback towards $10k, so the same can be expected from the mentioned range. The expert shared these observations in “Twitter“
All conditions are met
Wu’s analysis is based on a map of the supply of BTC according to the price that hodlers have paid for the coins since 2012.
Bitcoin base price density map. Source: “Twitter»
Horizontal stripes indicate price ranges in which most of the supply of an asset moved between investors. They reflect strong agreed value.
According to the analyst, there are three conditions under which the BTC price never returns to the previous support band:
- strong negotiated price ranges;
- exit from a bear market;
- upcoming halving.
At the moment, Bitcoin ticks all the boxes: the halving is scheduled for the end of April 2024, and the market is emerging from a bear market.
According to CoinGeckothe main cryptocurrency is now trading at $37,190. Over the past 24 hours, the cost of BTC has increased slightly – by 0.2%.
How will a spot Bitcoin ETF affect BTC adoption?
Wu also emphasized that the Bitcoin ecosystem has undergone significant changes since 2010. Thus, at the time of the emergence of cryptocurrency, the BTC network had only 10 thousand users. Now it is used by more than 300 million people around the world.
The expert noted that the potential approval of the first BTC spot ETF in US history will have a positive impact on these indicators. The new tool will push them to grow.
Bloomberg Intelligence analysts previously predicted that the spot Bitcoin ETF market would grow to $100 billion within a few years of its launch. Experts from Matrixport predicted that the price of BTC will break through $56 thousand if the US Securities and Exchange Commission (SEC) makes a positive decision on the applications.
Source: Cryptocurrency
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