According to Bitcoin analyst Willy Woo, BitcoinIt has likely formed a long-term price base above $30,000 based on an insightful supply pattern that has been in place for 8 years.
Woo, in a recent post in tweet He shared a Bitcoin contour map visualizing the distribution of BTC supply by price. The map shows dense horizontal bands representing price levels at which the bulk of Bitcoin supply moves among investors, reflecting a strong consensus value.
Woo, Bitcoin:
- Whenever it has a strong value band
- Any time it breaks out of a bear market
- Whenever it attempts the next upcoming halving
…emphasizes that the price has not returned to these support bands again.
So far, this model is 8 out of 8 in predicting higher BTC price bottoms after each bear cycle. If it continues like this, BTC will likely retest the $30,000 to $40,000 value zone for the last time in this current market cycle.
Woo explains that unlike traditional commodities, adoption of Bitcoin as a decentralized store of value technology is still growing rapidly. Increased adoption leads to less supply availability and higher prices in the long run.
Woo believes that there are more than 300 million Bitcoin users today, compared to just 10,000 in 2010, and that Bitcoin is still very early in its maturity cycle. More adoption drivers, such as Spot Bitcoin ETF approval, could further accelerate this user growth going forward.
Koinfinans.com In summary, Willy Woo uses on-chain supply dynamics to make a convincing case that BTC falling below $30,000 could be its last decline. If past patterns continue, Bitcoin’s next phase of adoption is likely to be marked by significantly higher value bands leading up to the 2024 halving and beyond.