Bitcoin: Whales Prevented the Bottom... Reversal Signal at the $70,600 Support Level

▲ Bitcoin (BTC)

It has been analyzed that the average purchase price of large holders is behind Bitcoin's (BTC) defense of the $66,000 to $70,600 range during the recent correction. It is diagnosed that whale investors who recently bought reduced their selling as they approached the loss zone, causing this price range to act as a natural support level.

According to NewsBTC, a cryptocurrency specialized media outlet, on May 8th, CryptoQuant analyzed the realized price of whale investor groups in a recent report. The realized price refers to the average cost at which a specific group of investors acquired Bitcoin. As the spot price approaches this cost basis, the likelihood of holders incurring losses when selling increases, creating a structure where selling pressure weakens at this point.

Two groups played a supporting role in the recent correction. The realized price for whale investors active between the last 1 and 7 days was approximately $66,000, and for whale investors active between the last 7 and 30 days, it was approximately $70,600. Bitcoin approached this range during the correction but rebounded instead of breaking down.

NewsBTC viewed the $66,000 to $70,600 range not merely as a technical rebound point. This range was where the break-even points of large whale funds were concentrated recently, and the sentiment among large holders to curb selling was presented as a key factor supporting the market bottom.

The same range acted to reduce selling pressure while also serving as a re-accumulation zone. As the price points where large funds recently entered were recognized as a defense line, a structure was formed where some buyers might opt for additional purchases rather than exiting. CryptoQuant assessed that as long as Bitcoin maintains above the $66,000 to $70,600 range, there remains evidence supporting the formation of a short-term bottom and the potential for a subsequent directional shift.

However, if the lower boundary breaks, the interpretation changes completely. If Bitcoin clearly falls below $66,000, the short-term bottom theory will be invalidated and it could be perceived as a strong bearish signal for the overall market. The breakout of the long-term moving average and horizontal resistance around $82,000 also remains a variable that will determine the short-term trend.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*