Although its gains have slowed down in recent days, Bitcoin (BTC) is nonetheless trading above the psychologically important price level at $37,000, and certain indicators suggest that there is a strong chance that the flagship decentralized finance (DeFi) asset will never go back under $35,000.
As it happens, Bitcoin’s valuation based on its mining difficulty (hash rate) reached $35,000 on November 26, which, according to the pseudonymous cryptocurrency market analyst PlanB, represents a critical level below which this crypto asset would never drop.
Specifically, unless events like black swans or short-term volatility occur, “based on $/kWh-arbitrage fundamentals… BTC will never go below $35k ever again,” and will only continue growing, as the expert explained using a Bitcoin valuation model chart analysis shared in an X post on November 27.
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In the analyst’s view, this growth has a lot to do with the United States Securities and Exchange Commission (SEC) possibly greenlighting the first spot Bitcoin exchange-traded fund (ETF), and applicants like BlackRock (NYSE: BLK) “currently front-loading BTC… through miners instead of exchanges.”
Indeed, as the expert further pointed out, buying BTC directly on crypto exchanges would impact the price too much, whereas buying indirectly from miners would impact the hash rate, but not so much the price, and this could account for the current hash rate eruption.
Bitcoin price analysis
Meanwhile, the price of the maiden cryptocurrency at press time stood at $37,178, which represents an increase of 0.38% in the last 24 hours, a loss of 0.03% across the previous seven days, and a 7.99% gain over the past month, according to the latest information on November 28.
In conclusion, Bitcoin could, in fact, meet the analyst’s expectations and really never drop below the $35,000 mark, particularly in view of the possible approval of a first spot Bitcoin ETF, and the approaching halving event that has historically led to massive price increases.
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