Bitcoin dropped as low as $20,071 on June 14
Chain analysis firm InTheBlock suggests Bitcoin whales may have come back into action. The largest influx since February, with 116,000 BTC transferred, was spotted via the large holder influx metric, which tracks funds entering whale-owned addresses.
“This is pointing to a potential bottom at price as these addresses tend to buy in size following a significant correction,” IntoTheBlock researchers wrote in a note.
The significance of Bitcoin bottoming out in price is well cited by the Guggenheim Scott Minerd, who wrote in a recent tweet: “The crypto meltdown is the canary in the coal mine.” Crypto told us ahead of time that stocks were in for trouble. And until we bottom out here in crypto, we’re not going to bottom out in anything else.”
Many newer entrants are already underwater as Bitcoin hovers around December 2020 lows. The bear market for Bitcoin has entered its “deepest and darkest” phase, according to analysts at Glassnode, with even long-term holders who have ridden it out until now under enormous pressure.
According to Glassnode’s Realized Price Indicator, which calculates the average buy price of all Bitcoin in circulation, BTC is now trading around $3,000 below its current realized price of $23,430. Bitcoin fell as low as $20,071 on June 14.
Bitcoin battles for support above $20,000
According to IntoTheblock data shared by a crypto analyst, Ali Martinez, the most significant support level for Bitcoin extends from $21,030 to $21,630. BTC must hold above this level to avoid a downswing to the next interest zone around $19,680. On the contrary, if BTC closes above $22,300, it could run to $24,670.
At press time, Bitcoin was trading down 2.37% at $20,827.
