The biggest cryptocurrency, Bitcoin (BTC) registered a marginal surge on Tuesday while major altcoins like Solana (SOL) and Ethereum prices dropped. BTC price is up by a massive 125% on the year to date (YTD) basis holding the crucial $37k level. However, Crypto experts suggest that Bitcoin might never go below the $30k price mark.
Bitcoin on-chain pattern sparks Optimism
According to Willy Woo, a Bitcoin analyst expressed his optimism as an on-chain pattern, tracking the cryptocurrency’s price discovery over the past 13 years, suggests that the chances of BTC dropping below $30,000 again are declining.
The on-chain pattern resembling a contour map depicts the distribution of BTC supply based on the prices at which HODLers acquired their coins and how this distribution has evolved over time. However, the chart reveals dense horizontal bands reflecting price regions where a significant amount of supply changed hands, indicating strong agreed-upon values.
Willy Woo pointed to a consistent trend where Bitcoin has not revisited these dense horizontal bands after displaying three key characteristics:
(a) Strong bands of agreed-upon prices,
(b) Emergence from a bear market,
(c) Occurring in the lead-up to the next halving event, as marked in vertical bands on the chart.
It is important to note that this on-chain pattern has held true in all eight instances.
In the broader context, the “up only” trajectory is attributed to Bitcoin’s ongoing adoption. He highlighted that over the 13-year period, BTC has evolved from a network with 10,000 users in 2010 to a global one with over 300 million. Analysts believe this trend will continue to climb, especially with the potential introduction of a spot exchange-traded fund (ETF).
BTC surge reflects holders’ confidence
The widespread adoption and growing user base combined with the anticipation of a spot ETF directs that Bitcoin’s value may continue on an upward trajectory. Meanwhile, the BTC is still far from reaching commodity market saturation.
CryptoChan reported that the count of untouched Bitcoin inactive for over a year surged to stand at around 13.67 million. This reflects high confidence among long-term holders. Despite a massive price surge recorded in October, there’s no discernible inclination toward profit-taking selling from these committed investors.