$27K 'max pain' Bitcoin price is ultimate buy-the-dip opportunity, says research
It may not happen, but a crash to $27,000 would be the chance for many investors to "go all in" on BTC.
Bitcoin (BTC) is facing calls for a significant price dip this week, and while some favor $30,000, there may be a safer bottom to long BTC.
In a tweet on April 28, on-chain analysis platform Whalemap used whale support to
determine where "many" investors should enter the market. Should hodlers hope for "max pain"?
With Bitcoin whales in focus at what is the most
historically significant consolidation zone in Bitcoin's history, their buying and selling matters .
Last month's push to near $50,000 was thwarted, among other things, by large-volume sellers, the analysis showed at the time.
Now, as $30,000 returns to traders' radar as
an "ultimate bottom," those whales may, in fact, be primed to help cement a new macro floor for BTC/USD.
For Whalemap, coins bought
en masse at $27,000 mean that level — just below the 2021 yearly open and bottom from last July — is the one to watch.
"25K—27K area is max pain for many," it commented.
"Ideal place to go all in Bitcoin if we ever get there."
Whalemap issued a map of Bitcoin realized price sorted by wallet size as the basis for its potential price target. Realized price shows at what price each Bitcoin last moved, making $25,000–$27,000 a key interchange point for buyers and sellers alike.
The largest whales, meanwhile, also have a vested interest in $34,000.
Bitcoin realized price by address chart. Source: Whalemap/ Twitter Bitcoin exchanges still busy with buyers
Looking at buying habits more broadly, April has not disappointed despite drawdowns.
Data from on-chain analytics firms Glassnode and CryptoQuant shows that not only has the trend of BTC leaving exchanges accelerated, but reached levels rarely seen.
"The 30-day change in the Bitcoin
Exchange Balance is hitting negative levels that we've only seen a handful of times in the last two years," Twitter account On-Chain College wrote alongside an annotated chart of Glassnode's exchange net position change figures.
Bitcoin exchange net position change annotated chart. Source: On-Chain College/ Twitter
21 trading platforms tracked by CryptoQuant, meanwhile, have the lowest combined BTC reserves since September 2018. Bitcoin exchange reserves chart. Source: CryptoQuant