Analysts said Bitcoin (BTC) sees a tsunami of new users as a backdrop for prices that are likely to hit a low of around $ 52,000.
In a series of tweets on April 20, statistician Willie Wu called for calm due to the recent drop in Bitcoin’s price and the subsequent $ 9,000 below recent record levels.
A $ 1 trillion roof creates a new streak in the sand
In line with previous claims, Wu claimed that buyer’s support made Bitcoin a trillion-dollar asset, so BTC / USD would not fall below the corresponding spot rate to keep it at around $ 53,000.
He wrote, “This low price review led to an incredibly powerful test of Bitcoin’s price of nearly $ 1 trillion.” 14% of the supply exceeded another trillion dollars. ”
“This is a major line in the sand, imprinted with BTC rates, a massive support area.”
Chart showing Bitcoin’s support strength with a market cap of $ 1 trillion. Source: Willie Wu / Twitter
Wu also noted the continuous transfer of coins from weak hands to strong hands, as well as the increasing number of new users entering this area.
For contemporary analyst William Clemente, this new form of “hockey stick” was important.
“This is by far the most important post on this topic,” Wu replied, noting that technical traders were more bearish on Bitcoin despite the strength of the indicators in the chain.
Bitcoin unit growth compared to BTC / USD. Source: Willie Wu / Twitter
GB Morgan is going down against Bitcoin … again
Among them was Nikolaus Banegertzoglou of JP Morgan, who claimed in his latest publication that this drop in prices will not lead to buyers as he did before.
He added that liquidation of futures positions will not change, so the general interest in institutional Bitcoin betting will now disappear.
“In recent days, the Bitcoin futures markets have seen a sharp decline, similar to mid-February of last year, mid-January or end-November of last year,” Bloomberg was quoted as saying.
“The pulse signals will naturally fade from here over a period of several months, given their high level.”
At the time of writing, BTC / USD is still hesitating in its short-term path, clinging to $ 55,000 as signs of life have reverted to some altcoins.
One cryptocurrency that is no longer performing better was Dogecoin (DOGE), which fell 18% on Wednesday after Dogecoin Day failed – an attempt to raise the price to $ 4.20 -.
DOGE / USD is up 160% on the week.