Bitcoin: Will $30,000 Hold and Can it Become a “Safety Net” for Investors?
Bitcoin analyst Willy Woo believes that Bitcoin (BTC) might maintain its support above $30,000, based on a consistent pattern observed since 2012.
Woo discusses monitoring Bitcoin’s cost density map. This map indicates where long-term BTC holders acquired their assets and illustrates the evolving nature of these levels over time. According to Woo, this visual representation reveals areas where investors strongly align on Bitcoin’s value.
He highlights the existence of eight price levels representing “strong agreed value” thus far, emphasizing that Bitcoin has not revisited these specific levels. Woo suggests a potential trend, indicating that if this on-chain pattern persists, BTC might not dip below $30,000.
The on-chain analyst elaborates on the significance of dense horizontal bands on the price chart, representing regions where significant supply exchanges indicate a consensus on value.
He outlines the observed pattern: when Bitcoin experiences robust agreed-upon price bands after a bear market and preceding a halvening event (marked in vertical bands), the price tends not to retest this support level.
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Woo contextualizes this trend within Bitcoin’s evolution, citing its growth from 10,000 users in 2010 to over 300 million today, positioning it as a store of value technology. He also anticipates further adoption with the potential introduction of a spot ETF.
In examining Woo’s chart, the initial two areas of significant agreed value sit below $10, followed by three under $1,000. The sixth, seventh, and eighth levels fall below $20,000, with a potential ninth area hovering around the $30,000 mark.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
