New data from Whalemap suggests that Bitcoin price must stay above the $ 14,914 level in order to maintain upward momentum.
Whale heaps form bubbles like the ones shown in the graphic below when high net worth investors buy bitcoin and don’t move. This indicates that whales have accumulated BTC at this level and suggests that if there is a correction it is likely to remain as a support area.
Therefore, it is critical in the short term that Bitcoin stay above $ 14,914 for an extended period of time. This would mean consolidation below a multi-year resistance of $ 16,000 and stability above an important support level.
What’s Keeping BTC Price Above $ 14,914?
Over the past week, Bitcoin has seen unusual price movements and has been quite volatile across a wide range.
From November 6-9, BTC tested the $ 16,000 level twice and dropped to just $ 14,350. This short-term volatility was likely linked to a number of macro events, including the “controversial” US election results.
There have been a number of major risks in the market since early November. The choice risk benefited Bitcoin noticeably as investors sought safe havens. Then Pfizer’s vaccine breakthrough became an unexpected variable that caused Bitcoin and gold to collapse.
Despite these uncertainties, Bitcoin remained well above $ 13,600, a level precisely pinpointed by analysts at Whalemap. They write:
“New levels that formed over the weekend! When we start reaching this should be a good guide to the levels. The price should stay above ~ $ 13,600 to continue the bull run. “
In the short term, the range of $ 13,600 to $ 14,914 remains the most important for the Bitcoin rally to continue. So far, BTC’s momentum has been relatively strong considering miners have been selling.
As Cointelegraph previously reported, CryptoQuant CEO Ki Young Ju said in an interview that miners were selling bitcoin. Given BTC’s resilience, demand for new buyers was likely able to counteract miners’ selling pressures.
Investors are at a crossroads
Bitcoin is experiencing massive volatility as the market is uncertain. Some on-chain indicators signal that BTC is entering an oversold zone where investors could take profits. Philip Swift, a cryptocurrency analyst, wrote:
“Relative unrealized profit / loss indicator: Has now entered the ‘greed’ zone on this last push-up from #bitcoin. Sounds bad, but we can actually spend large parts of the bull cycle in this area. We’re still early and have plenty of room upstairs. “
However, other fundamental metrics suggest that Bitcoin is still in the early stages of a bull run. For example, HODLing activity continues to grow, and research suggests that smart money fueled most of the upward trend.
The lack of clarity in the direction of Bitcoin is evident both in the unusual price movement and in the mixed messages of the data points in the chain. Still, the outlook remains cautiously optimistic as long as the top cryptocurrency stays above USD 14,914, at least for the short term.