The average cost of large whales is around $40,000.
Bitcoin has never fallen below that average cost, CryptoQuant shows.
Although the price of bitcoin (BTC) has been well above $40,000 (USD) since early 2024, it remains a key level in case of a deep pullback.
The reason is that The average cost per bitcoin of wallets that have more than 10,000 BTC is USD 39,874 at the moment. This is indicated by a report shared by the analysis company CryptoQuant, which was prepared by the researcher known as “BlitzzTrading” on October 8.
This is due to the increase in purchases made by the large whales, a term by which the owners of such wallets are known due to their enormous possession. This caused its average cost per bitcoin to grow relative to the previous year’s levels.
“When we examine historical data, we see that the price of bitcoin has never fallen below the average cost of wallets that hold more than 10,000 BTC,” he highlights. Even during bear markets, This metric has functioned as a support level.
This can be seen in the following graph, where the price of bitcoin is shown in white and the average base cost of wallets with more than 10,000 BTC is shown in red.
Whales could help BTC not drop below $40,000
This behavior then provides a glimpse of how the price could act in the event of a setback. “If we enter a bear market, the USD 39,874 level could serve as excellent support,” says the specialist.
The reason for this is that whales tend to protect their investment around their average cost, increasing their purchases if the price falls near that area. Therefore, following this value is essential to identify the possible continuity of the market.
This price level has also functioned as support between the end of last year and the beginning of this year.. Therefore, it results in a strong psychological level where demand could grow in the event of a decline, as shown below.
Meanwhile, bitcoin has been in a corrective period for seven months after reaching an all-time high of USD 73,700. At the time of this writing, it is trading around USD 62,000, which despite the decline means an appreciation of 46% so far in 2024.
Interest cuts in the United States, which increase liquidity, are expected to motivate demand for financial assets in the coming months. With such a panorama, bitcoin could benefit, as anticipated by CriptoNoticias. This means that, for the moment, a bear market is not on our hands as long as the macroeconomic and political environment supports.