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Is Bitcoin really “cheap” at $19,000?

July 3, 2022 - Around 2 mins mins to read

Bitcoin is hovering around the price of $19,000. At this support, many whales are still “buying” because they think BTC is at a cheap price. Is this really true? Can the price of BTC fall further?

Bitcoin

Whales Still Collecting “Cheap Bitcoin”

El Salvador’s president Nayib Bukele announced on 1 July that his country added 80 BTC to its balance sheet. He also noted that the purchase was made at $19,000 per BTC, a price level that he described as cheap.

Many other crypto proponents share similar sentiments that Bitcoin is at a discount currently. MicroStrategy is among them, and the organization recently announced the purchase of 480 BTC worth roughly $10 million. There are multiple reasons why the $19,000 price level represents a healthy discount according to some of these high-profile individuals.

As updated in an earlier Coincu News article, the Richest Whale Wallet Accumulating BTC Can Make $102 Million In A Month. The wallet, ranking third in Bitcoin holdings behind two crypto exchange wallets, bought 4,816 BTC over the past month, splurging over $102 million in the process.

Bitcoin
Source: BitInFoCharts

The current price level represents more than an 80% discount from its all-time high (ATH). A major factor that contributes to the perception that BTC is cheap or discounted at $19,000 is that most of the institutional traders bought in at higher price levels.

Although the $19,000 price level is currently holding as a strong support level, unfavorable market conditions may trigger more downside. One likely outcome if Bitcoin falls below $19000 is an extended panic selling which may trigger a cascade effect. The liquidation of leveraged long positions may also contribute to more downside. The other likely scenario is strong accumulation as investors take advantage of discounted price levels.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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