“Bitcoin has never fallen below this line”

The bitcoin price has been caught in the clutches of bears all year. As of early 2022, bitcoin has already lost over 50 per cent of its price value and there is no end in sight. The big question, of course, is where the absolute bottom finally lies.

Where does the bottom lie?

When it comes to bottoms, we can always count on the gents at Whalemap. Once again, they come up with an interesting chart showing the average purchase price of bitcoiners with 100 to 1,000 bitcoin.

At the time of writing, the average purchase price of this cohort of bitcoiners is around $12,480. Interestingly, in its entire history, the bitcoin price has never fallen below the average purchase price of this cohort.

Time and again, this green line represents the absolute bottom of the bear market. Whalemap’s analysts see a price drop to the $12,500 mark to pick up cheap sats, however, it remains to be seen whether the rest of the market is waiting for that.

“Don’t get distracted by noise”

The tricky thing about this stage of bitcoin’s life is that there is so much information available that sometimes you can’t see the forest for the trees. Bitcoin has now emerged as a world-class financial asset, making it increasingly important to keep an eye on all geopolitical developments.

The gentlemen and ladies of Whalemap prefer to keep it simple. “Don’t get distracted by the noise,” they chime in on Twitter.

That statement is accompanied by a chart in which we can see the buying zones of whales. Based on that, Whalemap has managed to identify some support and resistance points in bitcoin’s price chart.

According to Whalemap’s analysts, the main support is now at $19,174, which the price is well above with the current $19,900. The first major resistance encountered is at $20,380

If bitcoin breaks through that, the way up is fairly open to the $21,543 mark, but it will be some time before we get there.

Author

  • Gabriele Spapperi

    Gabriele Spapperi is a veteran cryptocurrency investor and blockchain technology specialist. He became fascinated with Bitcoin and distributed ledgers while studying computer science at MIT in 2011.

    Since 2013, Gabriele has actively traded major cryptocurrencies and identified early-stage projects to invest in. He contributes articles to leading fintech publications sharing his insights on blockchain technology, crypto markets, and trading strategies.

    With over a decade of experience in the crypto space, Gabriele provides reliable insights and analysis on the latest developments in digital assets and blockchain platforms. When he's not analyzing crypto markets, Gabriele enjoys travel, golf, and fine wine. He currently resides in Austin, Texas.

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