By Nathan Ferguson
Nayib Bukele, El Salvador president, announced that his nation purchased 80 BTC amidst the current dip on July 1. He revealed completing the deal at $19K per coin, a price zone that Bukele describes as cheap. Should you consider buying Bitcoin at $19,000? Let’s dig deeper.
Most cryptocurrency proponents believe BTC trades at a discounted price within its current value area. MicroStrategy is among them, recently revealing its 480 BTC purchase worth approximately $10 million. Many high-profile individuals share several reasons behind $19K being a lucrative discount.
For now, Bitcoin trades more than 80% down from its ATH. The primary factor supporting the perspective that $19K is a BTC discount is that many institutional investors purchased at higher prices. Remember, BTC attracted most investors when speculation had $100K as a target.
Bitcoin’s Demand
Bitcoin has seen its price hovering beyond $19K following the latest slump. That confirms BTC secured support around the mark after witnessing massive selling momentum since June 26. This phase saw active addresses on a significant surge. Nevertheless, recent data shows receiving addresses exceeds selling ones.
Bitcoin’s receiving addresses were 699,440, whereas sending addresses stood at 631,248 on June 30. That shows more individuals perceive price areas around $19K as attractive to buyers than sellers. Moreover, similar narratives in BTC’s balance on address supply distribution enhance the observation.
Addresses with 1K to 10K $BTC increased their holdings to 26.5% by July 1 from June 29’s 26.43%. This cohort accounts for the largest whale category that controls BTC by supply. Therefore, they have had a significant effect on price performance.
Contrarily, addresses with 10K to 100K $BTC plummeted from June 29’s 11.37% to July 1’s 11.23%. Wallets with over 100L $BTC controlled 4.08% of BTC’s supply during that timeframe.
Possible Outcomes If BTC losses $19K Support
Though BTC secured a dependable foothold at $19K, unfavorable conditions within the market can catalyze further declines. Such outcomes emerged on June 18 when Bitcoin plummeted to the $17,622 lows. The token rebounded within no time as buyers capitalized on the discount. Nevertheless, the crypto remains weak and might fall towards the lows again.
The possible outcome if BTC plummets beneath $19K will be a stretched panic selling which could catalyze a cascade impact. Liquidating leveraged long positions might lead to further downside. Another possible outcome is a massive accumulation as enthusiasts hunt for discounted prices.