Chances of Bitcoin Dropping Below $20,000 at Any Month End Are Very Small – Here’s Why
- One of the cryptoanalysts says that BTC is likely to remain above $20,000
- Ordinals improve the condition of BTC miners.
In recent days, Bitcoin dominated the headlines as it surged past the $24K barrier, which remains an important psychological level.
Along with BTC’s prices, skepticism around the peak also increased, and many called the rise to be a bull trap.
However, new data from an analyst suggested that while BTC prices may fall, the decline will not be too drastic.
Read BTC’s price forecast 2023-2024
According to analyst Timothy Peterson, the chance of Bitcoin falling below the $20k mark is less than 1%. Timothy believes that most investors will quickly buy drops below $20k.
One of the factors cited behind this reasoning was that 50% of all risk asset owners wait to buy dips.
In case, if the royal coin goes back to the $20,000 level, it will certainly affect short-term holders. But this would be a good opportunity for the long-term holders.
In particular, the number of long-term HODLers of Bitcoin has grown tremendously in recent days, according to data provided by glassnode.
📈 #Bitcoin $BTC The amount of HODLed or lost coins just reached a 5-year high of 7,617,132,238 BTC
See calculation: pic.twitter.com/30Cxi6ULh1
— glassnode alerts (@glassnodealerts) 18 February 2023
These long-term owners did not have many incentives to sell. According to data provided by Santiment, Bitcoin’s MVRV ratio was positive, but only by a small margin. It suggested that many Bitcoin holders still had to wait before their holdings could become very profitable.
Surprisingly, the number of short-term holders also decreased in the last week, as indicated by the widening long/short spread.
One part of Bitcoin that suffered from selling pressure was the mining sector. However, with the introduction of Ordinals, the condition of BTC miners has improved considerably.
Miners see some hope
This was because miners’ profitability increased due to Ordinals. The reason for the growth in profitability for miners was the increasing average block size of Bitcoin.
As the block size of Bitcoin increased, the amount of fees the miners earned grew. Thus affecting the overall income generated.
According to Delphi Digitals data, Ordinals accounted for 12.5% of Bitcoin’s collected daily fees.
How much is 1,10,100 BTC worth today?
The increasing block size not only helped miners, but also helped the overall Bitcoin network by increasing the security of the blockchain.
However, despite these improvements, traders remained skeptical of BTC’s growth. According to coinglass’ data, the number of short positions taken against BTC has increased in recent days.
Well, only time will tell how all these factors will affect Bitcoin in the long run.