Whalemap suggests that Bitcoin bulls could face “do or die” if the USD/BTC exchange rate drops below $27,000
Although Bitcoin ( BTC), may have attempted to flip $30,000 support to May 19, one group of analysts is focusing their attention on a new drop.
Whalemap , an on-chain monitoring resource, tweeted the support levels Bitcoin bulls need to defend in order to avoid new significant losses.
Whales dictate “do or die” BTC price support
Commentators are split over whether Bitcoin’s current price behavior of ” no one’s land ” has caused it to be called ” no man’s land “.
Some are calling for $32,000 next. However, many argue last week’s $23,800 trip was not the lowest BTC/USD can manage moving forward.
Whalemap analyzes the buying/selling of Bitcoin’s largest investors and recommends a zone between $24,000 and $26,000 as the best.
These are the areas where whale groups have deployed more funds and provide significant on-chain support.
Whalemap analysts warn that if the zone is retraced under selling pressure, it could lead to a “much deeper” correction.
Whalemap also noted in a separate article that realized losses are now outweighing gains. Bitcoin may still be on the verge of a price turn.
It commented that “Two-times more losses than profits were transacted onto-chain in the past couple of days,” on May 18.
“Last time this happened, $BTC saw a rally up. Let’s see what happens next. “\
Cointelegraph previously reported on increasing overall Bitcoin realized losses, which reached their second highest daily levels since last week.
Report foresees “rocky road ahead”
The BTC/USD was trading at $29,400 at the time of writing. This is despite an attempt to break 24-hour highs.
Although the Wall Street open was expected to shake the market again following the May 18 session which saw significant sell-side pressure across equities, it then spilled into crypto.
It is interesting to note that the ten-month-lows last week coincidedwith Bitcoin’s total on-chain realized price. However, there are still strong questions about whether this fact will suffice to stop the market from reaching a new level.
“It remains unknown if a complete return to the Realized price is required to put the bear market under control, and if so for how long, and if so for how long,” Glassnode stated in its latest edition of ” The Weekly On-Chain “, released May 16.
“Perhaps those are gone if the accumulation that we saw is an indication of the support bulls will put up in the $20ks area. You should also note that there are still many headwinds from macro, inflationary, and monetary policy forces. It will be difficult to see the way ahead.
