In brief:
- Willy Woo has pointed out that only 7.3% of Bitcoin’s supply has moved since BTC hit a $1 Trillion market cap
- Chances are, that the $1 Trillion market cap is supported by investors henceforth
- Bitcoin maintains a $1T market cap at $53,590
- $55k is the level to watching during the weekly close
- Deribit Bitcoin options worth $5.7B expire next Friday and could provide additional selling pressure
Veteran Bitcoin analyst Willy Woo has forecasted that BTC’s market cap might never drop below $1 Trillion again. Mr. Woo cites that only 7.3% of Bitcoin’s supply has moved since this market cap milestone was reached. Therefore, chances are that Bitcoin investors now view this as a crucial area of support in terms of market capitalization.
Mr. Woo shared his analysis via the following statement and accompanying chart courtesy of Glassnode.
URPD: “7.3% of bitcoins last moved at prices above $1T” This is pretty solid price validation; $1T is already strongly supported by investors. I’d say there’s a fair chance we’ll never see Bitcoin below $1T again.
$55k is the Bitcoin Level to Watch During the Weekly Close
Doing the math, a $1 Trillion market cap for Bitcoin is maintained with BTC’s value constantly above $53,590. This value is achieved by dividing the $1 Trillion market cap with the current circulating supply of 18,660,062 BTC as reported by Coinmarketcap.
Bitcoin maintaining a value above this level is possible given that BTC is currently trading at $57,300 after a momentary dip to $55,400 earlier today. The latter price area thus hints that $55k is the support area to watch during today’s weekly close.
Deribit Bitcoin Options Worth $5.7B Expire Next Friday
However, the weekly close is not the last hurdle for Bitcoin in the month of March. According to the team at Unfolded, $5.7 billion worth of Bitcoin options expire next Friday, March 26th. This in turn means that there could be additional selling pressure for the BTC as the week progresses. The team at Unfolded shared this information through the following tweet.
Deribit prepares for historic $5.7 billion worth of #bitcoin options expiry next week, with max pain price at $40k. pic.twitter.com/2tBjF0PAzK
— unfolded. (@cryptounfolded) March 18, 2021
