Cointelegraph Team
Cointelegraph
Bitcoin (BTC) speculators waiting for a BTC price drop of even 35% will probably be waiting forever, new data shows.
In a tweet on Sep. 22, quant analyst PlanB noted that Bitcoin will break the habit of a lifetime if it goes lower than $6,700.
PlanB tracks historical BTC price floor
PlanB was referencing the 200-week moving average (200MA) for BTC/USD. A popular tool in his work, the 200MA has never been broken during Bitcoin price downtrends.
As of Tuesday, the level equated to $6,700 and continues to rise by around $200 every month.
As long as historic behavior continues as it has done since Bitcoin’s 200th week of existence, $6,700 will now form a definitive price floor.
“BTC 200WMA never goes down. BTC monthly close has never been below 200WMA,” PlanB confirmed earlier in September when the figure stood at $6,600.
He added that in March 2017, Bitcoin saw a “struggle” to clear the significant $1,000 mark for good. After succeeding, however, all-time highs of $20,000 arrived by the end of the year.
This month, meanwhile, Cointelegraph noted that significant buy support from whales lays far higher, at $8,800.
Bitcoin price vs. 200-week moving average historical chart. Source: PlanB/ Twitter
93% bullish on Bitcoin price in 2020
As Cointelegraph also reported, PlanB recently called for BTC/USD to begin climbing towards $100,000 as part of his research. His stock-to-flow family of Bitcoin price forecasting models has made highly bullish predictions about the current four-year halving cycle, which ends in 2024.
Bitcoin should be in line to trade at an average $288,000 by that point — an “order of magnitude” more than at present, but so far, stock-to-flow has charted BTC price rises with complete accuracy and its methodology is yet to be disproven.
Meanwhile, a survey about the future of Bitcoin price action published following the 200MA update has attracted 14,000 responses.
PlanB’s Bitcoin price Twitter survey as of Sep. 23. Source: PlanB/ Twitter
The majority — 59.1% at press time — is bullish about Bitcoin over the next year, and also favors BTC over other cryptocurrencies. In total, 92.8% of respondents are bullish when it comes to BTC/USD.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Lukas Enzersdorfer-Konrad, Bitpanda deputy CEO: “Crypto needs Gary Gensler gone”
Lukas Enzersdorfer-Konrad is the deputy CEO at Bitpanda, a broker based in Europe with more than five million users. At the European Blockchain Convention held in Barcelona, the executive shared with FXStreet his views on the current state of the crypto industry and its regulation.
Bitcoin still consolidates despite positive spot ETFs demand
Bitcoin (BTC) trades slightly up, around $64,000 on Thursday, following a rejection from the upper consolidation level of $64,700 the previous day. BTC’s price has been consolidating between $62,000 and $64,700 for the past week.
Why is ONDO’s price outlook bullish?
DefiLlama data shows that Ondo TVL reached a new ATH of $613.75 million. Ondo’s Supply Distribution metric shows whale accumulation. On-chain data shows that ONDO’s daily trading volume is rising, and the supply of exchanges is decreasing.
Maker price eyes a rally on technicals and on-chain metrics
Maker trades above $1,500 on Thursday, suggesting a potential rally as technical indicators show bullish divergence. This positive outlook is reinforced by MKR’s Exchange Flow Balance, which shows a negative spike, indicating growing investor confidence in the platform.
Bitcoin: Fed-led rally could have legs towards $65,000
Bitcoin is poised for a second consecutive week of gains, supported by the recent 50-basis-point cut in interest rates by the Federal Reserve. Bitcoin broke above several key technical resistances this week, signaling a rally continuation.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.