Bitcoin (BTC) continued to soar with the latest all-time high record approaching $ 34,700 yesterday.
As you can see, in the fourth quarter of 2020, BTC prices went crazy with consecutive ATH records from October to the end of December, setting a record high of $ 20,000 for the first time.
On-chain analyst Willy Woo via his Twitter tweet explained that the king of cryptocurrencies will not fall below $ 20,000, unless there is a black swan phenomenon that causes BTC to be below the $ 24,000 support level due to the liquidity crisis due to COVID-19 in mid-March last year.
Black swan is a term that refers to large and unexpected events or incidents that have a significant impact on the market.
Another analyst, @typerbole said the recent rise in the price of Bitcoin has to do with the halving factor, seen happening before the sharp surge.
For example, the latest cycle occurs about 150 days after halving 2020. In contrast to the 2017 surge that occurred on 250 days and 2013 is only 50 days after halving.
The analyst revealed that retail investors are seen not to be involved in the 2020/2021 surge cycle, showing that retail investor interest rates are still below the 2017 record with the highest record recorded at the 2013 surge.
This explains the increase in BTC prices mostly driven by institutional investors and whales.
However, in the face of massive purchases by institutional investors, including locked or lost assets, the ‘HODLing’ whales mentality and the unspent supply of miners, Satoshi Nakamoto’s assets are seen to be facing a liquidity crisis.
