July 18, 2024

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New data hints why Bitcoin price action has spent two months at $30K

2 min read

Bitcoin (BTC) has seen almost two months of rangebound price moves after hitting $30,000 — and new data hints why.

In a series of tweets on July 15, popular Twitter commentator Nunya Bizniz presented multiple arguments supporting the significance of $30,000 for BTC/USD.

All roads lead to $30,000?

Despite rising fundamentals and ongoing adoption narratives, BTC price action has failed to reestablish a bullish trend.

Still 50% below recent all-time highs, Bitcoin is without direction, something which leads opinions to favor a bearish outcome of what has been eight weeks of sideways movement.

For Nunyaz Bizniz, there are a number of technical factors which are converging to support $30,000 as a focal level.

These include $30,000 being “approximately” the 1.618 Fibonacci extension level on the monthly chart versus the $3,100 lows in late 2018, as well as the 2021 yearly opening price.

Its psychological significance is compounded by it being a round number, and as others have noted, it fits into a longer-term trendline which places $64,500 as something of a mini-run to a blow-off top.

“Its approximately the 1.618 Fib Ext. Which in the two prior cycles was tested as support but was never closed below on the monthly chart,” accompanying comments read about the Fibonacci phenomenon.

“This time?”

Research defends “Bitcoin supercycle”

The importance for Bitcoin not to break below $30,000 and fail to reclaim it compounds existing anxiety about a full-on BTC price breakdown.

Related: Bitcoin metric sees ‘hell of a bounce’ in move which historically heralds BTC price bottom

Amid the unease, some voices caution that it is only a desire to interpret events to push one’s own narrative, bullish or bearish, which is at play.

Bitcoin itself, meanwhile, is not as weak as price suggests, as fundamentals confirm.

“Regardless on your risk appetite, strategizing now is key, so as not to miss the next wave in this current Bitcoin supercycle,” Stack Funds concluded in its latest report released Thursday.

Nunya Bizniz meanwhile included Tesla’s BTC stash as a potential sticking point. Below $30,000, the user calculated, the firm would start being underwater, which may trigger executive demands to sell more in order to reduce losses.

As Cointelegraph reported, investors are already back in the accumulation phase around $30,000.