- Historical data suggested that Bitcoin’s value will not fall below a support level.
- BTC’s network activity remained robust, which was a bullish signal.
Bitcoin [BTC] showed a promising bull rally in October, rising 22% and eventually reaching above $37,000. At the time of writing, BTC was trade at $36,510.30 with a market cap of over $713 billion.
The price of Bitcoin may not fall below $30,000
If the latest analysis is to be believed, the chances of Bitcoin falling below $30,000 are slim. Therefore, this could be the right opportunity for investors to stock up on BTC ahead of another bull rally.
Willy Woo, a popular BTC analyst, recently posted a tweet revealing why BTCs might not go below that level.
We’ll likely never see BTC drop below $30,000 again if this on-chain pattern holds true… (8 for 8 so far)
What you see here is #Bitcoin‘s price discovery for 13 years. It’s a contour map of 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 BTC supply based on the price HODLers paid for their coins and how it changed over time. The dense horizon bands are price areas where a large portion of supply moved between investors, reflecting strong agreed-upon value.
According to the tweet, the price never came back to retest this support band when BTC had strong ranges of agreed-upon prices while coming out of a bear market and heading into the next halving. Simply put, investors may not see it BTCAs of now, the price plummets below $30,000.
AMBCrypto further analyzed BTC’s liquidation heatmap, which showed that BTC’s liquidation rose sharply twice this year around $28,000. Each time the price of the coin went up.
Given the strong support level, BTC might not be able to fall below that point in the future.
Source: Hyblock Capital
Bitcoin is preparing for a bull rally
The possibility that BTC will initiate a bull run in 2024 is high as the coin expects its next halving in April next year. Historically speaking BTCThe company’s share price always reached new highs a few months after the halving.
To put that into perspective, let’s look at the previous halving, which took place in May 2020.
Before the 2020 halving, BTC was trading somewhere between $8,000 and $9,000. However, just a few months later, the coin’s price skyrocketed, reaching $35,000 in January 2021. The bull rally did not stop there as the price of the coin reached $65,000 in April.
Source: Santiment
As BTC prepares for the next halving, the mining sector continues to thrive. AMBCrypto controlled Coinwarz’ graphic and found that BTC’s hashrate has risen consistently in recent months, clearly indicating growth.
An increase in hashrate also means an increase in the number of miners, which reflects their trust in the king of cryptos.
Source: Coinwarz
Is there anything planned in the short term?
Although BTC’s future looks bright, investors’ hopes for BTC also increased. This was evident from the fact that the number of fish and shrimp portfolios has increased significantly in recent months.
Surprisingly, the number of whale addresses did not change much 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 that BTCs Daily active addresses have been consistent over the past three months.
Another positive signal was the high speed. Simply put, a higher rate means that Bitcoin was used in transactions more often within a given time frame.
Source: Santiment
AMBCrypto then looked at BTC’s daily chart to better understand whether investors could expect a price pump in the near term. According to our analysis, Bitcoin’s Relative Strength Index (RSI) registered an increase.
Read Bitcoins [BTC] Price prediction 2023-24
The Chaikin Money Flow (CMF) also followed a similar route, increasing the likelihood of a price increase.
However, not everything was perfect. BTC‘s Money Flow Index (MFI) fell and headed towards the neutral point. The Bollinger Bands indicated that the price of BTC entered a less volatile zone, indicating that investors may be in for a few slow-moving days.
Source: TradingView