Bitcoin pushed further down in today’s trading session and reached important levels of support. The first crypto by market cap returned all of last week’s profits and is moving in the red over the past 24 hours.
At the time of writing, Bitcoin (BTC) was trading at $23,400 with a sideways movement for the past day and a loss of 2% over the past 7 days.
Director of Macro for investment firm Fidelity Jurian Timmer believe that Long-term bitcoin investors have the opportunity to increase their holdings at current levels. Via his Twitter account, the expert claims that bitcoin is cheaper as he traced the cryptocurrency’s price versus price chart.
Timmer’s bullish thesis is based on BTC’s adoption curve and a possible scenario where this curve will continue to move upwards and increase the underlying value of the cryptocurrency. As seen below, there is a direct correlation between BTC adoption and its price.
The chart below shows the BTC price/network ratio, how bitcoin reacts to greater adoption, and its price. The former metric was trending lower than BTC price until it was able to break a key resistance area and turn it into support.
Bitcoin has been rallying on that support for over a month, coinciding with the BTC price hitting an annual low of around $17,700. As the chart above shows, these levels have historically acted well as resistance/support and have signaled BTC price around that area.
Timmer said the following on BTC’s ability to continue to appreciate over the long term:
Bitcoin’s price-to-network ratio (my proxy for the valuation multiplier) is back at 2014 levels. Meanwhile, its network continues to grow, roughly corresponding to a power regression curve. For me, the main nuance is the slope of the adoption curve. Whether we use the mobile-phone curve or the Internet curve as a proxy, the price of bitcoin is below its actual and projected network-growth curve (…).
Who is buying bitcoin at current levels?
If Timer’s predictions hold true, the price of bitcoin should rise higher and hit an all-time high of $100,000 by 2050 as more people adopt it, and its circulating supply decreases. This could push the price of BTC closer to $1 million by 2030.
Timer compared the price of BTC to that of gold, concluding that the cryptocurrency experienced “the biggest oversold situation in years”. This supports the expert’s theory that BTC price may find a solid bottom on the higher time frame.
Additional data from Timer showed an increase in the number of BTC holders. 13% of the cryptocurrency’s total supply has entered the 10-year latencies, and more and more people are buying it in the long run.
Who is buying bitcoin these days? Apparently not tourists (ie, short-term holders). The percentage of bitcoins held in less than three months has barely increased recently. /5 pic.twitter.com/fKpvbEhE89
— Jurian Timmer (@TimmerFidelity) 17 August 2022