Bitcoin approaches the "extreme pain zone", IBIT and Strategy average holdings price become key support

Source: TokenPost Original Title: Bitcoin ( $BTC ), 'Pain Zone' entry imminent… IBIT and Strategy average price is the key turning point. Original Link: Bitcoin is approaching the “maximum pain zone (max pain)” in the recent downtrend. This zone is located between the average purchase price of $84,000 (approximately 112 million KRW) for the asset management company's spot ETF and the Bitcoin holding cost of $73,000 (approximately 97.32 million KRW) for Stratigy, and is considered a critical zone where liquidity may sharply deplete and market sentiment could collapse.

André Dragosch, the head of European research at a certain investment research institution, recently stated on social media that the “cyclical bottom” of Bitcoin is likely to form within this range. He described it as the “fire-sale (fire-sale )” phase, where most investor positions have been liquidated, corresponding to a level of complete market reset.

Especially the spot Bitcoin ETF ( IBIT) of asset management companies is one of the fastest-growing ETFs in recent months, with an average purchase price of $84,000. As the Bitcoin price approaches this level, the pressure to liquidate among institutional investors may increase, which could exacerbate the overall market's selling sentiment. Stratigy also holds thousands of Bitcoins long-term, with an estimated average purchase price of about $73,000.

Dragosch emphasized that the cost basis of these major holding institutions has a direct impact on market liquidity, and the trend at this price level will play an important role in confirming future market direction and bottoms.

Currently, Bitcoin is fluctuating around $63,000 and is undergoing a correction after reaching its peak. Analysts are concerned that if the price falls below the major buying price, large-scale liquidations and a shrinkage in investor sentiment will be difficult to avoid.

Market Interpretation

If Bitcoin falls below the institutional buying point, the selling pressure will increase significantly, which may lead to overall asset liquidity tightening, bringing not only the risk of a sharp decline in the short term but also potentially impacting the investment strategies of major institutions.

Key Strategies

Traders can use the average holding prices of IBIT and Stratigy as technical support levels, and the price reaction at this level will become an important reference for measuring investor sentiment.

Terminology Explanation

“fire sale (fire-sale)”: A sale of assets at a low price in order to urgently recover funds.

“成本基础(Cost Basis)”: The average purchase price paid by specific asset holders. This price affects investment gains and losses as well as psychological sell-off decisions.