Bitcoin (BTC) may be attempting to turn the $30,000 level into support on May 19, but for a group of analysts, the focus is firmly on a further drop.
In a tweet of the day, the Whalemap on-chain monitoring resource defined support levels that Bitcoin bulls must defend to avoid further significant losses.
Whales dictate ultimate BTC price support
Bitcoin’s current “no man’s land” price action has commentators divided on whether the next decisive move will be up or down.
While some projected $32,000 or more below, many argue that last week’s trip to $23,800 was not the lowest the BTC/USD pair will achieve in the future.
For Whalemap, which analyzes the buying and selling of the largest Bitcoin investors, the area to watch is around $24,000 to $26,000.
This is where the largest groups of whales deployed funds, and their presence therefore provides considerable on-chain support.
Should the selling pressure unravel the area, the results could be a “much deeper” pullback, Whalemap analysts warn, describing the whales’ support levels as “definite”.
However, in a separate post, whale map he pointed that with realized losses now dwarfing gains, Bitcoin could still be in for a price swing.
“In the last two days there have been twice as many losses on-chain as there have been gains,” he commented on May 18.
“The last few times this happened, $BTC rallied. Let’s see what happens this time.”
Previously, Cointelegraph reported on Bitcoin’s growing overall losses, reaching its second-highest daily level in history last week.
Report predicts a ‘rocky road’ ahead
At the time of writing, the BTC/USD pair was trading around $29,400, in an attempt to break above 24-hour highs.
Nevertheless, Wall Street’s opening was poised to destabilize the market yet again, following the May 18 session, which saw considerable selling pressure in equities spilling over into cryptocurrencies.
Given that last week’s ten-month lows coincided with Bitcoin’s overall realized on-chain price in the meantime, interest remains strong as to whether this fact, in and of itself, will be enough to prevent the market from reaching a new level of capitulation.
“It remains to be seen whether a full return to realized price is required to put this bear market to rest, and if so, whether it is for months, weeks, days, or just a brief moment,” concluded on-chain analytics firm Glassnode. in the latest issue of its weekly newsletter, “The Week On-Chain,” published on May 16.
“Perhaps those days are behind us if the buildup we see is indicative of the support the bulls are willing to offer in the $20 range. Note also that there are still a number of macro, inflationary and monetary policy forces at play. like headwinds. The road ahead is likely to remain difficult.”
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