Last Updated: 7 October 2022
The bitcoin price has been caught in the clutches of bears all year. As of early 2022, bitcoin has already lost over 50 per cent of its price value and there is no end in sight. The big question, of course, is where the absolute bottom finally lies.
Where does the bottom lie?
When it comes to bottoms, we can always count on the gents at Whalemap. Once again, they come up with an interesting chart showing the average purchase price of bitcoiners with 100 to 1,000 bitcoin.
At the time of writing, the average purchase price of this cohort of bitcoiners is around $12,480. Interestingly, in its entire history, the bitcoin price has never fallen below the average purchase price of this cohort.
In any case – falling to $12,500 and getting some cheap #Bitcoin is more fun than current price action, right?
— whalemap (@whale_map) October 6, 2022
Time and again, this green line represents the absolute bottom of the bear market. Whalemap’s analysts see a price drop to the $12,500 mark to pick up cheap sats, however, it remains to be seen whether the rest of the market is waiting for that.
“Don’t get distracted by noise”
The tricky thing about this stage of bitcoin’s life is that there is so much information available that sometimes you can’t see the forest for the trees. Bitcoin has now emerged as a world-class financial asset, making it increasingly important to keep an eye on all geopolitical developments.
The gentlemen and ladies of Whalemap prefer to keep it simple. “Don’t get distracted by the noise,” they chime in on Twitter.
Don't be distracted by the noise pic.twitter.com/R63woNiJKl
— whalemap (@whale_map) October 5, 2022
That statement is accompanied by a chart in which we can see the buying zones of whales. Based on that, Whalemap has managed to identify some support and resistance points in bitcoin’s price chart.
According to Whalemap’s analysts, the main support is now at $19,174, which the price is well above with the current $19,900. The first major resistance encountered is at $20,380
If bitcoin breaks through that, the way up is fairly open to the $21,543 mark, but it will be some time before we get there.