Bitcoin (BTC) has seen nearly two months of price swings after hitting $30.000 — and new data shows why.
In a series of tweets on Thursday, popular Twitter commentator Nunya Bizniz presented several 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 re-establish an uptrend.
Still 50% below the most recent historical records, Bitcoin is without direction, something that leads opinions to favor a pessimistic result of what was eight weeks of lateral movements.
For Nunyaz Bizniz, there are a number of technical factors converging to support $30.000 at the focal level.
This includes $30.000 being "approximately" the 1,618 Fibonacci extension level on the monthly chart versus $3.100 at the end of 2018, as well as the 2021 annual opening price.
Its psychological significance is heightened by the fact that it is a round number and, as others have noted, it fits into a long-term trendline that puts $64.500 in as a sort of mini-race to the top of the explosion.
“It's approximately 1.618 Fib Ext. Which in the two previous 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 of not breaking below $30.000 and failing to catch it increases existing anxiety about a total collapse of BTC prices.
Related: Bitcoin metric sees 'quite a jump' in move that historically heralds BTC price bottom
Amidst the discomfort, some voices warn that it is just a desire to interpret events to push the narrative itself, bullish or bearish, that is at stake.
Bitcoin itself, on the other hand, is not as weak as the price suggests, as the fundamentals confirm.
“Regardless of your risk appetite, strategy is now the key to not missing the next wave in this current Bitcoin supercycle,” concluded Stack Funds in its latest report released on Thursday.
Nunya Bizniz, meanwhile, included Tesla's BTC stock as a potential point of conflict. Below $30.000, the user calculated, the company would start to go underwater, which could generate demands from executives to sell more in order to reduce losses.
As reported by Cointelegraph, investors are already back in the accumulation phase around $30.000.