According to an analysis by Edward Morra, a popular Bitcoin trader, Coinbase and Bitfinex exchange now have large buy orders in excess of $ 17,200.
The rise of big buying walls is significant because on Nov. 18, the BTC flash crashed to about $ 17,222. This shows that whales are using large buy orders to vigorously defend the USD 17,200 support area.
How strong is the USD 17,000 support?
Both whale clusters and exchange order books show that the USD 17,000 level is becoming a major area of support.
Above USD 18,500, there is little resistance to its all-time high at USD 20,000. This means that if Bitcoin remains stable above USD 17,000, the odds of breaking out above USD 18,500 are significantly increased.
Based on whale activity and exchange order books, it has become more unlikely that the price will fall below $ 17,200. For such a big downward move to occur, a massive sell order would have to lead to cascading liquidations.
Prior to Bitcoin’s intraday recovery from $ 17,340 to $ 18,000, whales on Bitfinex placed sell orders. Recently, Morra said Bitfinex has seen more buy orders at the USD 17,000 support. He wrote:
In case it drops, Coinbase places many bids (buy orders) below the current range. Surprisingly, Bitfinex, which previously mainly placed sales walls, now has a pretty thick buying wall below. “
Analysts at Whalemap are tracking Bitcoin whale activity by identifying clusters and they said USD 17,783 and USD 17,651 formed as clusters.
These ‘whale clusters’ arise when major Bitcoin holders buy BTC at a certain price and don’t move those funds elsewhere. So if whale clusters form at $ 17,783 and $ 17,651, it shows whales were buying at those levels and holding their investment.
Bitcoin’s high timeframe setting is strong
In November, many analysts pointed to the long-timeframe charts to indicate an optimistic outlook for the short to medium term.
Kevin Kelly, the co-founder and head of global macro at Delphi Digital, stressed that Bitcoin is on track to close the first monthly candle above $ 14,000. Kelly said:
“And if $ BTC closes November anywhere near current levels, it will mark a new monthly closing price, surpassing the December 2017 close just above $ 14,000.”
Even during the run-up to the 2017 record, Bitcoin struggled to maintain a stable price action for a high timeframe. Based on the trend and many other factors, Kelly noted that Bitcoin is maturing. He wrote:
“It’s important to remember that the road to the top is never linear; significant withdrawals are inevitable. But make no mistake, this market is maturing. #Bitcoin is catching the attention of the world’s best investors. It permeates the innermost circles of the world’s best thinkers. “
About big Bitcoin (BTC) exchanges are beginning to form large shopping walls. Considering that the price of BTC has rebounded above USD 18,000, this trend is optimistic.