Bitcoin: Whales Held the Floor...Reversal Signal at the $70,600 Support Line

▲ Bitcoin (BTC)

It was analyzed that the average purchase price of large holders was behind Bitcoin (BTC) defending the $66,000 to $70,600 range during the recent correction. It is diagnosed that whale investors who recently started buying reduced their selling before entering the loss zone, causing that price range to act as a natural support line.

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 basis 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.

During the recent correction, two groups played a supporting role. The realized price for whale investors active between 1 and 7 days ago was approximately $66,000, and for whale investors active between 7 and 30 days ago, 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 as not just a simple technical rebound point. This range was where the break-even points of recent large-scale whale funds converged, and the selling suppression sentiment of large holders was presented as a key factor supporting the market bottom.

The same range also functioned as a re-accumulation zone while reducing selling pressure. As the entry price of large funds that recently started buying was recognized as a defense line, a structure was formed where some buyers might move towards 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 possibility of a subsequent directional shift.

However, if the lower boundary breaks, the interpretation changes completely. If Bitcoin clearly drops 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. Whether the long-term moving average and horizontal resistance zone near $82,000 are broken 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.*