Bitcoin Has a Rock Solid Support at $6,700 Level

As per the latest analysis report published via a tweet by quant analyst PlanB, Bitcoin (BTC) traders and investors who are waiting for a price decline of about 35% from the current level of $10,500 will be permanently waiting.

Precisely, PlanB has stated that Bitcoin will contradict its historical pattern of staying above the 200-day moving average if it falls below $6,700.

The reference level of 200-week moving average for BTC/USD has never been breached in Bitcoin’s decade old history. Currently, the 200-week moving average equates to $6,700 and continues to increase by about $200 per month or roughly $6.60 per day.

Unless the historic pattern gets breached, Bitcoin will have solid support at $6,700 in the weeks ahead. Earlier this month, PlanB had stated that “BTC 200WMA never goes down. BTC monthly close has never been below 200WMA.” At that time, the figure stood at $6,600.

He further stated that in March 2017, Bitcoin had to “struggle” to breach the crucial level of $1,000. After crossing above that level, historical high of $20,000 was attained by the end of that year. Notably, considerably higher than the 200-week moving average, Bitcoin also has a crucial support level at $8,800, where whales are concentrated.

Of late, as part of research, PlanB had forecast BTC/USD to start moving upwards towards $100,000 level. Using his popular stock-to-flow forecasting models, PlanB has made overwhelmingly bullish predictions for the prevailing four-year halving cycle ending in 2024.

At that end of 2024, according to PlanB’s model, Bitcoin will be trading at an average price of $288,000, far higher than the current level. Notably, so far, PlanB’s forecast based on stock-to-flow model has been reasonably accurate and the technique is yet to be proven wrong.

In the meantime, a poll about the future price trend of Bitcoin saw over 14,000 participants. At the time of writing this article, 59.2% have a bullish view of bitcoin for the forthcoming year and also prefer Bitcoin for altcoins. Overall, 92.8% of poll participants have a bullish view of BTC/USD pair.