Bitcoin whale clusters show $23,409 as a key support area, which means the ongoing rally has a strong floor.
Bitcoin (BTC)
whale clusters show that the $23,409 level has become an area of focus
for large traders. This indicates that the ongoing bull run is buoyed by
whales continuing to accumulate above $23,000.
Whale clusters
form when whales purchase Bitcoin and do not move their BTC holdings
from the price of purchase. Clusters are useful in determining Bitcoin’s
support levels, especially when the market moves rapidly.
"Should not be going lower than $23,409"
According
to analysts at Whalemap, a data analytics firm that tracks Bitcoin
whale activity, BTC has formed a strong floor in the $23,000 to $23,500
range. They said:
“Surprisingly
large amounts of losses were flowing on-chain at 19k prices. When this
happens in bullish conditions BTC gives us nice rallies (10k-->20k
last time). We have multiple strong supports at recent prices as well...
Should not be going lower than $23,409.”
It is important
for Bitcoin to establish solid support areas during a bull run due to
the risk of sudden corrections. If whale clusters are present at high
price levels, like $23,409, then whales are likely to bid slightly
higher and sustain Bitcoin’s momentum.
Peter Brandt, a long-time trader, pinpointed the parabolic line of Bitcoin dating back to October as a key area to watch.
The
line indicates $24,000 as the critical support area, which would mean
BTC needs to stay above it to prevent a large drop. Brandt wrote:
“Bitcoin
$BTC is advancing in parabolic move from Sep '20 low. I expect this
curve to be violated at some point, but not to produce 80% decline.
Green curve is a larger parabolic advance from Dec 2018 & Mar 2020
lows. This is the driver of bull market.”
In the near
term, the whale clusters and the parabolic trendline show that $23,409
and $24,000 are the two key levels Bitcoin must hold.
Below
$24,000, the chances of an accelerated correction increase, which could
worsen if whale cluster support areas are breached.
Where would BTC top out at?
Traders
generally believe Bitcoin could rise to two levels: $30,000 and
$36,000. The latter has become a popular near-term prediction because
the options market indicates a high probability of $36,000 being hit in
the upcoming months. Of course, the former is a key psychological
level.
A pseudonymous trader known as “Byzantine General” said
that he foresees Bitcoin topping out at $30,000. He explained that
$30,000 is the “golden ratio extension” level and also has sell orders
on Coinbase and Bitfinex. He said:
“I
think this rally tops out mid-term around 30k. It's the golden ratio
extension. Also happens to be where CB & Finex got fat asks laying
around.”
On Dec. 27, Cointelegraph reported that
Bitcoin immediately saw big volatility, ultimately shedding 6.5% within
a span of a few hours after the price topped out at $28,200 across
major exchanges. Given that resistance areas with heavy sell order scan
be met with large pullbacks, the $30,000 area could present a major
short-term roadblock to Bitcoin.
source link : https://cointelegraph.com/news/bitcoin-whale-clusters-pinpoint-key-support-level-for-the-rally-to-continue
