Bitcoin (BTC) is facing calls for a significant price dip this week, and while some favor $30,000, there may be a safer bottom to long BTC.
In a tweet on April 28, on-chain analysis platform Whalemap used whale support to determine where “many” investors should enter the market.
Should hodlers hope for “max pain”?
With Bitcoin whales in focus at what is the most historically significant consolidation zone in Bitcoin’s history, their buying and selling now matters.
Last month’s push to near $50,000 was thwarted, among other things, by large-volume sellers, analysis showed at the time.
Now, as $30,000 returns to traders’ radar as an “ultimate bottom,” those whales may in fact be primed to help cement a new macro floor for BTC/USD.
For Whalemap, coins bought en masse at $27,000 mean that level — just below the 2021 yearly open and bottom from last July — is the one to watch.
“25k-27k area is max pain for many,” it commented.
“Ideal place to go all in Bitcoin if we ever get there.”
Whalemap issued a map of Bitcoin realized price sorted by wallet size as the basis for its potential price target. Realized price shows at what price each bitcoin last moved, making $25,000-$27,000 a key interchange point for buyers and sellers alike.
The largest whales, meanwhile, also have a vested interest in $34,000.
Bitcoin exchanges still busy with buyers
Looking at buying habits more broadly, April has not disappointed despite drawdowns.
Related: Bitcoin institutional buying ‘could be big narrative again’ as 30K BTC leaves Coinbase
Data from on-chain analytics firms Glassnode and CryptoQuant shows that not only has the trend of BTC leaving exchanges accelerated, but reached levels rarely seen.
“The 30 day change in the Bitcoin Exchange Balance is hitting negative levels that we’ve only seen a handful of times in the last 2 years,” Twitter account On-Chain College wrote alongside an annotated chart of Glassnode’s exchange net position change figures.
The 21 trading platforms tracked by CryptoQuant meanwhile have the lowest combined BTC reserves since September 2018.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
