On July 1, El Salvador’s president, Nayib Bukele, stated that his government has decided to add 80 Bitcoin [BTC] to its financial statements. He further mentioned that the acquisition was done for $19,000 per BTC, which he termed as the lowest.
Several other cryptocurrency supporters believe that the flagship currency is cheap at the moment. MicroStrategy is one of those, and the company just revealed the acquisition of 480 BTC worth almost $10 million.
The existing price range indicates more than 80% drop from the all-time record. One key element that adds to the idea that BTC is at its lowest price of $19,000 is that the majority of institutional investors purchased the currency when it was trading for a higher price range.
Bitcoin Price Forms Support Around $19,000
Following the latest drop, Bitcoin’s value is fluttering around $19,000. It shows that Bitcoin price has established support around this price mark and is now under heavy selling pressure since June 26th.
Over the similar time frame, the volume of active accounts climbed considerably. But, recent figures show that incoming addresses exceed sending addresses.
On June 30, there were 699,440 accepting addresses and 631,248 outgoing addresses in Bitcoin. This demonstrates that a large number of buyers believe that price ranges around $19,000 draw more purchasers than suppliers.
The above conclusion is backed by identical findings in Bitcoin’s production allocation by account balance.
Accounts with 1,000 to 10,000 BTC raised their allocation from 26.43% on June 29 to 26.5% on 1st of July. This is indeed the largest whale group, and it dominates the flow of Bitcoin. Hence , the classification seems to have had a significant influence on pricing behavior.
Accounts possessing within 10,000 and 100,000 BTC, on the other hand, fell from 11.37% on June 29 to 11.23% on July 1. Throughout the similar time frame, addresses with greater than 100,000 BTC controlled 4.08% of Bitcoin’s circulation.
What If Bitcoin Drops Below $19,000?
Despite the $19,000 price area being a solid support point, negative market circumstances may cause more decline. This kind of scenario was witnessed on June 18 when BTC fell as far as $17,622. It immediately recovered as purchasers availed opportunity of the lower price range. Nevertheless, the price may fall more if poor market circumstances remain.
Suppose Bitcoin goes under $19000, one possible result is prolonged anxious dumping, that could set off a chain of reactions. The elimination of massive long holdings might potentially add to the losses. The second possible outcome is considerable acquisition as buyers will avail the benefit of low prices.