Bitcoin (BTC) is currently experiencing a tsunami of new user adoption as a backdrop to prices somewhat bottoming at about $52,000, according to analysts. In April 20’s series of tweets, statistician Willy Woo led some calls for calm about BTC’s recent price dip and subsequent lingering $9,000 below recent all-time highs.
On-chain indicators are just too bullish to permit a deeper price drop, analysts say, with BTC set to remain a trillion-dollar asset.
$1 Trillion Cap Created New ‘Line In The Sand’
Reiterating previous assertions, Woo said that buyer support had strongly established BTC as a trillion-dollar asset and that bitcoin would, thus, not fall much below the equivalent spot price to maintain it at about $53,000. He wrote:
“This revisit of lower price has created incredibly strong price validation for Bitcoin about $1T cap. 14% of the supply last moved above the $1T cap. This is a key line in the sand imprinted into BTC’s price discovery, an area of immense support.”
Woo also mentioned the continued transfer of coins from weak hands to strong, along with a spike in new users entering the space. For another analyst, William Clemente, this “hockey stick” shape of the new adoption was of essential significance. He replied to Woo:
“This is the most important post of this thread by far.”
Woo noted that technical traders had been far more bearish on BTC despite the strength of on-chain indicators.
JPMorgan Turns Bearish Again On Bitcoin
Among them was JPMorgan’s Nikolaos Panigirtzoglou who argued in his latest note that the price dip would not see the buyers step in like before. Futures positions unwinding, he said, would not reverse and, hence, general interest in institutional bitcoin bets would now fade. Bloomberg quoted the note as stating:
“Over the past few days, Bitcoin futures markets experienced a steep liquidation similarly to the middle of last February, middle of last January, or the end of last November. Momentum signals will naturally decay from here for several months, given their still-elevated level.”
At the time of publication, Bitcoin was still quite undecided on its short-term trajectory, clinging to $55,000 as signs of life seemed to return to certain altcoins. One crypto no longer surging was Dogecoin (DOGE) which was down by 18% at some point on Wednesday after ‘Dogecoin Day’ – an attempt to boost the price to $4.20 – fell flat on its face.
DOGE/USD remained up 160% in a week.