Bitcoin whale clusters determine the importance of support for the rally to continue

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Bitcoin (BTC) whale clusters show the $ 23,409 level has become a focal point for large traders. This suggests that the ongoing bull run is being carried by whales, which continue to accumulate over $ 23,000.

Whale heaps form when whales buy Bitcoin and fail to offset their BTC holdings from the purchase price. Clusters are useful for determining bitcoin’s support levels, especially when the market is moving quickly.

Bitcoin whale cluster. Source: Whalemap.io

“Shouldn’t go below $ 23,409”

According to analysts at Whalemap, a data analytics firm that tracks bitcoin whale activity, BTC has formed strong bottoms in the $ 23,000-23,500 range. They said:

“Surprisingly, big losses at 19,000 prices flowed into the chain. When this happens in bullish conditions, BTC gives us nice rallies (10,000 -> 20,000 last time). We also have several strong supports on recent prices … Shouldn’t drop below $ 23,409. “

Because of the risk of sudden corrections, it is important for Bitcoin to establish solid areas of support during a bull run. If there are whale clusters with a high price level like $ 23,409, then whales are likely bidding a little higher and keeping Bitcoin’s momentum going.

Long-time trader Peter Brandt identified Bitcoin’s parabolic line from October as an important area to watch.

Daily BTC / USD price chart with trend lines. Source: TradingView.com, Peter Brandt

The line shows $ 24,000 as the critical support area, which would mean BTC would have to stay above it to prevent a big drop. Brandt wrote:

“Bitcoin $ BTC has been moving in a parabolic motion from the September 20th low. I expect this curve will be breached at some point, but it won’t result in an 80% drop. The green curve is a major parabolic advance from the December 2018 and March 2020 lows. This is the driver of the bull market. “

In the short term, the whale clusters and parabolic trendline show that $ 23,409 and $ 24,000 are the two key levels Bitcoin needs to hold.

Below $ 24,000, there is an increased likelihood of an accelerated correction, which could worsen if whale cluster support areas are violated.

Where would BTC top?

Traders generally believe that Bitcoin could rise at two levels: $ 30,000 and $ 36,000. The latter has become a popular short-term forecast as the options market shows a high probability that it will hit $ 36,000 in the coming months. The former is of course an important psychological level.

A pseudonymous trader known as the “Byzantine General” said he was counting on a guideline of $ 30,000 for Bitcoin. He stated that $ 30,000 is the “Golden Ratio Extension” level and also has sell orders for Coinbase and Bitfinex. He said:

“I think this rally is around 30,000 over in the medium term. It is the extension of the golden section. Coincidentally, CB & Finex also asked fat. “

On December 27, Cointelegraph reported that Bitcoin immediately experienced great volatility and ultimately lost 6.5% within hours of trading at $ 28,200 on major exchanges. Given that areas of resistance with strong sell order scan are facing major setbacks, the $ 30,000 area could be a major short-term hurdle for Bitcoin.