Bitcoin (BTC) price has been in a specific range for almost two months after hitting $ 30,000, and the new data indicates why.
In a series of tweets July 15, the popular Twitter commentator Nunya Bizniz presented multiple arguments supporting the importance of the $ 30,000 level for the BTC / USD pair..
Do all roads lead to $ 30,000?
Despite soaring fundamentals and ongoing adoption narratives, BTC price action has failed to reestablish an uptrend.
Still 50% below recent all-time highs, Bitcoin is without direction, something that leads opinions to favor a bearish result of what has been eight weeks of lateral movement.
For Nunyaz Bizniz, there are a number of technical factors converging to support the $ 30,000 as the core level.
These include that $ 30,000 is “roughly” the 1,618 Fibonacci extension level on the monthly chart versus the $ 3,100 lows of late 2018, as well as the 2021 annual opening price..
Its psychological importance is compounded by being a round number, and as others have pointed out, fits into a longer-term trend line at $ 64,500 as a kind of mini race to an impressive top.
“It is roughly the 1.618 Fib Ext. Which in the previous two cycles was tested as support but never closed lower on the monthly chart.”, you read in the comments that accompany the Fibonacci phenomenon.
An investigation defends the “Bitcoin supercycle”
The importance of the Bitcoin price not falling below $ 30,000 and not recovering the level aggravates the existing anxiety on a major drop in the price of BTC.
In the midst of the restlessness, some voices warn that what is at stake is the desire to interpret events to drive one’s own narrative, bullish or bearish.
Bitcoin itself, meanwhile, is not as weak as the price suggests, as the fundamentals confirm.
“Regardless of your risk appetite, strategy is key now, so as not to miss the next wave in this current Bitcoin supercycle.”Stack Funds concluded in its latest report released Thursday.
Nunya Bizniz, for her part, included Tesla’s BTC reserve as a possible sticking point. Below $ 30,000, the user calculated, the firm would begin to go under water, which could trigger demands from executives to sell more coins in order to cut losses.
As Cointelegraph reported, investors have already returned to the accumulation phase around $ 30,000.