New research explains why Bitcoin’s price has been stuck at $30K for the past two months.

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Several considerations explain why $30,000 is so crucial for BTC/USD in the context of an ongoing price “supercycle.”

Bitcoin (BTC) has experienced over two months of rangebound price movements since reaching $30,000 — and new data suggests why.

In a series of tweets on Thursday, 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 that leads opinions to favor a bearish outcome of what has been eight weeks of sideways movement.

A lot of technological elements are convergent for Nunyaz Bizniz to support $30,000 as a focal level.

These include the 1.618 Fibonacci extension level on the monthly chart vs the $3,100 lows in late 2018, as well as the yearly starting price in 2021.

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Its psychological importance is enhanced by the fact that it is a round figure, and, as others have noticed, it fits within a longer-term trendline that positions $64,500 as a mini-run to a blow-off peak.

“It’s 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?”

BTC/USD chart comparison with Fibonacci extensions. Source: Nunya Bizniz/Twitter

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.

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.

Meanwhile, fundamentals indicate that Bitcoin is not as weak as its price portrays.

“Regardless of your risk tolerance, strategizing now is critical to not miss the next wave in this current Bitcoin supercycle,” Stack Funds said in its most recent analysis, which was issued on Thursday.

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BTC/USD 1-day candle chart (Bitstamp). Source: TradingView

Nunya Bizniz, on the other hand, mentioned Tesla’s BTC stockpile as a potential sticking point. The user calculated that if the business fell below $30,000, it would be underwater, which might lead to management pressure to sell more in order to avoid losses.

As previously reported, investors are already back in the accumulation period, with a capitalisation rate of about $30,000.

 

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