Bitcoin(BTC) Price Display Huge Possibilities to Smash $30,000! Will it Happen in 2022?

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After a prolonged consolidation, Bitcoin prices experienced a relief in the recent past with a jump of nearly 10%. The asset began to swell at $20,780 and rallied to mark highs close to $24,000 in a very short time before falling back into the consolidation range over the weekend. Therefore, the current market rally appears to be pretty shaky but displays possibilities of regaining bullish momentum. 

But whether the gained momentum lasts long? If not will the BTC price continue to form multiple bull traps?

Bitcoin price after undergoing one of the worst capitulation phases appears to be preparing for a healthy recovery. No doubt, the recovery may be prolonged as an increase in the long-term holders display a huge possibility of a sustained upswing ahead.

The $20,000 region of the BTC price has attracted a large cluster of Short-term holders which is a result of a panic sell from the capitulating sellers to the optimistic buyers. However, such a cluster can also be noticed at around $30,000 and $40,000. Much of this supply has not been capitulated by the bears despite the fact that BTC’s price traded 50% less than the price they acquired. 

Source: Glassnode

The area of around $20,000 contains the 2nd and 4th largest UPRD(Unspent Realized Price Distribution) where-in a large transfer of ownership was witnessed. On the other hand, large volumes of coins accumulated in the past 6 months are currently in deep waters but holders are unwilling to sell. Therefore, indicating that a large number of holders are willing to mature their holdings despite losses. 

While some of the long-time holders have also contributed to the selling pressure when the asset displayed huge volatility. Further, it is quite possible that these high supply concentration nodes at $30,000 and $40,000 may act as a firm resistance when the market attempts to recover again. 

Collectively, the trader’s confidence over the rally appears to be pretty important for the upcoming trend of the asset. While the holders still display their faith in the upcoming bull run, the Bitcoin(BTC) price after a brief consolidation may significantly rise.