The bitcoin price has the potential of breaking down too the @$31k-32k region as that's the median cost of production of bitcoin considering the price of electricity, labor and factory.
Think about any product or goods you can see in your life, there are two types of prices.
Production cost price: It is the root value of the product. Factories take time,energy,labor, and materials... to complete a product then they just sell to commercial(trading companies). This is normally fixed and does not change in a long period.
Market price: It is the result that commercial/trading companies just sell to end-users. Depending on the types of products, the market price can change frequently.
In terms of Bitcoin, which is called a New Gold or a new Ponzi or whatever...
What are you seeing in Binance or Coinbase or CME ... is Market Price. In this market, the volatility is big. Everyone here knows it is manipulated with the combination of Fear/Fomo, Liquidity, Fud/Good News/ Futures and Leverage manipulation... You are a trader, You work like commercial/trading companies, also you are an end-user and consumer. Market price fluctuation can give you profit or loss.
So, what is the root value of Bitcoin?
Key words: Mining Industry/ Miners/ Electricity cost/ Production cost...
Bitcoin is a product. The production cost does not change much in a cycle. After each halving, difficulty increases, production cost will increase. That makes bitcoin special and valuable in long run.
Market price fluctuate frequent In a cycle, Bear or bull, It tends to approach the value of production costs. No Miners, No bitcoin. This is the root value of this product.
For current context in this cycle,
Electricity cost is 20k (Electricity only)
Production cost is 29-34k ( total cost of electricity/labor/factory..)