As per a recent analysis, the chances of Bitcoin sliding under the $30,000 mark are slim. Things in the short term also look bullish.Â
Historical data suggested that Bitcoinâs value will not go below a support level.Â
BTCâs network activity remained robust, which was a bullish signal.Â
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.Â
Bitcoinâs 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.
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.Â
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 BTCâs price plummeting under $30,000 from now on.Â
AMBCrypto further analyzed BTCâs liquidation heatmap, which revealed that BTCâs liquidation increased sharply near the $28,000 mark twice this year. Each time, the coinâs price moved up.
Considering the strong support level, BTC might actually not go below that point in the future.
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, BTCâs price has always reached new highs a few months after halving.
To put that into perspective, letâs consider the previous halving, which took place in May 2020.Â
Before the 2020 halving, BTC was trading somewhere between $8000 and $9000. However, only a few months later, the coinâs price skyrocketed and touched $35,000 in January 2021. The bull rally didnât stop there, as the coinâs price reached $65,000 in April.
While BTC prepares for its next halving, its mining sector continues to flourish. AMBCrypto checked Coinwarzâ chart and found that BTCâs 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.
Is there anything in store in the short term?
While BTCâs future looks bright, investorsâ 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.Â
Not only accumulation, but the blockchainâs network activity also remained robust. AMBCryptoâs analysis of Santimentâs data revealed that BTCâs daily active addresses were consistent over the last three months.Â
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.
AMBCrypto then took a look at BTCâs daily chart to better understand if investors should expect a price pump in the near term. As per our analysis, Bitcoinâs Relative Strength Index (RSI) registered an uptick.
Read Bitcoinâs [BTC] Price Prediction2023-24
Its Chaikin Money Flow (CMF) also followed a similar route, increasing the chances of a price uptick.
However, not everything was perfect.BTCâs Money Flow Index (MFI) went down and was headed towards the neutral mark. The Bollinger Bands pointed out that BTCâs price entered a less volatile zone, suggesting that investors might witness a few slow-moving days.