Three important events reveal that, if history is anything to go by, Bitcoin’s price shouldn’t go back below the $30,000 price line ever again. Popular on-chain analyst Willy Woo shared this analysis in a recent post on X (previously known as Twitter).
BTC Shouldn’t Go Back Below $30,000
Willy Woo believes Bitcoin’s latest rally is here to stay as the crypto will not drop beneath $30,000 again.
Woo, a noted Bitcoin analyst and co-founder of software company Hypersheet, observed that Bitcoin would likely avoid a retracement toward the $30,000 mark under the right conditions, just like the premier crypto defended the $10,000 price level.
Bitcoin’s price has enjoyed a face-melting rally in recent months as spot exchange-traded fund (ETF) euphoria thawed crypto winter. Market pundits say ETFs will make it dramatically easier to buy BTC, potentially greatly broadening the pool of potential investors. BTC has risen by over 100% so far in 2023. At the time of writing, the largest cryptocurrency by market cap was priced at $37,188, according to CoinGecko.
As per Woo’s analysis backed by a “Bitcoin Cost Basis Density Map,” three notable events prevent Bitcoin from retesting its present key band of support. He noted this to be whenever Bitcoin registered strong bands of agreed price, it came out of a bear market and was about to undergo the quadrennial halving event.
BTC can be said to currently exhibit the three aforementioned conditions, with the highly-awaited halving scheduled for April 2024. Moreover, the Bitcoin market is noticeably recovering from a bear market.
Woo explained that Bitcoin’s bull run is just getting started as the cryptocurrency’s ecosystem has evolved significantly from 2010 to date. During this period, Bitcoin’s user base has grown from a mere 10,000 to 300 million, owing to its increasing usage as a store of value.
Bitcoin And U.S. ETF Prospects
Woo further pointed out that the likely approval of the first spot Bitcoin ETF in the United States will attract more capital inflow into BTC and will further fuel a parabolic bull run for the coin.
The U.S. Securities and Exchange Commission rejected Grayscale Investment’s bid to convert the GBTC into a more-appealing spot ETF, but a court in August blasted that rejection, and the SEC decided not to appeal, boosting the odds Grayscale might get itself an exchange-traded fund.
And BlackRock, the world’s biggest asset manager, is high on Bitcoin’s prospects and has its own spot BTC ETF filing on the SEC’s desk — as do other financial services powerhouses.
According to ETF experts, it’s almost certain that such a Bitcoin-based investment vehicle will get approved by January 2024.