“Insane” Bitcoin price consolidation means $ 48,000 is the new level of BTC support

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Bitcoin (BTC) has seen “unreal” price consolidation since early February 2021 – and fundamental support is now at $ 48,000.

The second month of the year was a defining time for Bitcoin like no other, according to on-chain monitoring resource Glassnode.

$ 35,000 Bitcoin? So last month

The co-founders Yann Allemann and Jan Happel discussed the current status of the Bitcoin network and said that many price indicators were allowed to “reset” in February.

“The level of consolidation Bitcoin has seen since January is unreal. It has allowed fundamentals to catch up and indicators to reset,” they wrote in a tweet on February 17th.

“Looks like $ 48,000 is the new $ 35,000.”

BTC / USD volume chart with support levels marked. Source: Glassnode / Twitter

The buoyant outlook adds fuel to the bulls and hopes that $ 50,000, a level Bitcoin hit for the first time this week, will lay a solid foundation without major correction.

Despite wiggling around the $ 50,000 mark, all drops were quickly bought up, indicating solid buyer support at higher levels regardless of the pace of price gains or any negative external portrayal of Bitcoin.

“Under cash flow models, it would take a black swan to crack $ 36,000 on a daily close,” added statistician Willy Woo in response to Glassnode’s results.

He described Bitcoin’s current position as the “middle phase” of a bull market.

Saylor: No more 80% pullbacks

Allemann and Happel were not alone in the meantime. In his last appearance on The Bitcoin Standard author Saifedean Ammous’ podcast series over the weekend, MicroStrategy CEO Michael Saylor claimed that Bitcoin would not see another 80% drop in price like 2018.

“The volatility is not the same. If you look at the drawdowns, they are not the same,” he told Ammous.

“When bitcoin went up to $ 40,000 and then back down to $ 30,000, it was a 25% retracement, not an 80% retracement.”

As Cointelegraph reported, MicroStrategy plans to buy another $ 900 million in BTC in the short term, according to an announcement this week.