Bitcoin is hovering around the price of $19,000. At this support, many whales are still “buying” because they think BTC is at a cheap price. Is this really true? Can the price of BTC fall further?
Whales Still Collecting “Cheap Bitcoin”
El Salvador’s president Nayib Bukele announced on 1 July that his country added 80 BTC to its balance sheet. He also noted that the purchase was made at $19,000 per BTC, a price level that he described as cheap.
Many other crypto proponents share similar sentiments that Bitcoin is at a discount currently. MicroStrategy is among them, and the organization recently announced the purchase of 480 BTC worth roughly $10 million. There are multiple reasons why the $19,000 price level represents a healthy discount according to some of these high-profile individuals.
As updated in an earlier Coincu News article, the Richest Whale Wallet Accumulating BTC Can Make $102 Million In A Month. The wallet, ranking third in Bitcoin holdings behind two crypto exchange wallets, bought 4,816 BTC over the past month, splurging over $102 million in the process.
The current price level represents more than an 80% discount from its all-time high (ATH). A major factor that contributes to the perception that BTC is cheap or discounted at $19,000 is that most of the institutional traders bought in at higher price levels.
Although the $19,000 price level is currently holding as a strong support level, unfavorable market conditions may trigger more downside. One likely outcome if Bitcoin falls below $19000 is an extended panic selling which may trigger a cascade effect. The liquidation of leveraged long positions may also contribute to more downside. The other likely scenario is strong accumulation as investors take advantage of discounted price levels.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews