Since Bitcoin price hit $ 19,484, it has struggled to regain the $ 17,000-18,000 level. As the price continues to fall, traders will target key underlying support levels to determine where traders will buy if the price of Bitcoin (BTC) continues to fall.
The immediate support levels based on whale clusters are $ 16,694, $ 16,411, and $ 16,064, respectively. Below the $ 16,000 support, $ 15,355, $ 14,914, and $ 13,740 could serve as macro areas of support.
Whale piles form when whales accumulate BTC and fail to move their recently acquired funds. The clusters also indicate where whales last bought, indicating potential areas of support.
$ 16,411 is the short-term level Bitcoin needs to watch out for
Bitcoin price has shown weaker momentum over the past 24 hours. After such a large correction, some consolidation can be expected as the price seeks stability.
One positive trend is that buyers have aggressively defended the USD 16,411 support area that is dominated by whale clusters. This shows that there is sufficient buyer demand in the market to prevent a wider retreat, at least in the short term.
On November 27, Bitcoin tested the support area from $ 16,200 to $ 16,400 twice within 22 hours. Both retests received a decent response from buyers as BTC surged above $ 16,800 on both occasions.
For most of the day, Bitcoin stayed above $ 17,000 and hit a high of $ 17,400, showing signs that BTC is regaining its momentum.
Still, some traders aren’t ruling out the possibility that BTC may fall into the lower macro support areas. A pseudonymous trader named “Wolf” said the weekly chart was showing signs of overstretching. As such, he said the $ 13,000 region could be tested. The trader stated:
“Unlike $ ETH, $ BTC looks well beyond the weekly 21EMA, still far from interesting support. My ideal start would be the main support outlined at 13k. For now, we may hold weekly support for 16213 and then move down for an ABC correction. “
Another pseudonymous trader called “Crypto Capo” suggested a similar trend. He said he sees a scenario where BTC rises to $ 18,000 and then falls to the $ 13,000 region.
$ BTC USD 6 hours
Interesting price promotions mean more technical analysis. I expect the trend to cool down here. $ 17214 is the most important level to watch. Every day we close down here and I expect us to move to test the 0.382 level.
Love these conditions. pic.twitter.com/nGobpRAXiN
– Koroush AK (@KoroushAK) November 26, 2020
Traders expect Bitcoin consolidation to take weeks
Although there are long-running bearish predictions from long-time Bitcoin investors, some technical analysts say the consolidation could take a while.
Michael van de Poppe, a full-time trader on the Amsterdam Stock Exchange, said the market is facing a healthy retreat. After the correction, Poppe said the consolidation could take several weeks. He said:
“Relax and downsize, the market is making a healthy correction and is a great opportunity for everyone to invest. Don’t be impatient, the market will hit a natural low to confirm this. It only takes weeks. “
In the short term, the immediate area of interest for buyers remains the three whale cluster levels at $ 16,694, $ 16,411, and $ 16,064. If BTC falls below these levels convincingly, the likelihood of a deeper correction could increase significantly.
After the sharp drop in Bitcoin prices, whale clusters have several areas as important levels of support. These levels could allow BTC to stabilize and regain momentum in the short term.