Bitcoin (BTC) sees a tsunami of new user adoption as a backdrop for prices likely to bottom out around $ 52,000, analysts say.
In a series of tweets on April 20, statistician Willy Woo sparked calm about Bitcoin’s recent price dip and subsequent dragging $ 9,000 below the recent record highs.
A limit of $ 1 trillion has created a new ‘line in the sand’
Echoing previous claims, Woo argued that buyer support had firmly established Bitcoin as a trillion dollar asset and therefore BTC / USD wouldn’t fall much below the equivalent bargain price to keep it – about $ 53,000.
“This revisiting a lower price has created an incredibly strong price validation for Bitcoin with a limit of $ 1T. 14% of the supply last exceeded the $ 1T limit,” he wrote.
Woo also highlighted the continued transfer of coins from weak to strong hands, along with an increase in new users entering the space.
For fellow analyst William Clemente, this “hockey stick” form of new adoption was essential.
“This is by far the most important post on this thread,” he says replied to Woo, who noted that tech traders were much bearish on Bitcoin, despite the strength of indicators on the chain.
JPMorgan turns bearish on BTC … again
Among them was JPMorgan’s Nikolaos Panigirtzoglou, who claimed in his latest note that buyers would not intervene as before due to this price dip.
Settling futures positions, he added, would not reverse and so general interest in institutional Bitcoin betting would now fade.
“In recent days, the Bitcoin futures markets have experienced a steep liquidation in the same way as in mid-February, mid-January or late November,” Bloomberg said.
“Momentum signals will of course drop for several months from here, given their still high level.”
At the time of writing, BTC / USD was still undecided on its short-term trajectory, clinging to $ 55,000 as signs of life returned to certain altcoins.
One cryptocurrency that no longer performed better was Dogecoin (DOGE), which fell 18% on Wednesday after “Dogecoin Day” – an attempt to raise the price to $ 4.20 – fell flat on its face.
DOGE / USD continued to gain 160% in a week.