Bitcoin (BTC) whale clusters show that the $ 23,409 level has become an area of concern for major traders. This indicates that the ongoing bull run is being spurred by whales continuing to rally above USD 23,000.
Whale clusters form when whales buy Bitcoin and don’t change their BTC holdings from the purchase price. Clusters are useful in determining Bitcoin support levels, especially when the market is moving fast.
“Must not be less than $ 23,409”
According to analysts at Whalemap, a data analytics company that tracks Bitcoin whale activity, BTC has formed a strong bottom in the $ 23,000 to $ 23,500 range. They said:
“Surprisingly large amounts of losses flowed into the chain at prices of 19,000. When this happens in bullish conditions, BTC gives us nice rallies (10k -> 20k last time). We also have several strong supports at recent prices … Should not fall below USD 23,409. “
It is important for Bitcoin to create solid areas of support during a bull run due to the risk of sudden corrections. If whale clusters are present at high price levels, such as $ 23,409, then whales are likely to bid slightly higher and support Bitcoin’s momentum.
Peter Brandt, a longtime trader, pointed out Bitcoin’s parabolic line dating back to October as a major focus area.
The line marks USD 24,000 as the critical support area, which would mean BTC must stay above it to avoid a major drop. Burns wrote:
Bitcoin $ BTC is progressing in parabolic movement from the September ’20 low. I expect this curve will be violated at some point but will not yield an 80% decrease. Green curve is a larger parabolic advance from the December 2018 and March 2020 lows. This is the engine of the bull market. “
In the short term, the whale clusters and the parabolic trendline show that USD 23,409 and USD 24,000 are the two main levels that Bitcoin should maintain.
Below $ 24,000 is the chance of an accelerated correction increase, which could worsen if whale cluster support areas are breached.
Where would BTC end up?
Traders generally believe that Bitcoin can move up to two levels: USD 30,000 and USD 36,000. The latter has become a popular short-term forecast as the options market indicates that there is a high probability of $ 36,000 being hit in the coming months. The first, of course, is an important psychological level.
A pseudonymous trader known as “Byzantine General” said he expects Bitcoin to reach $ 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 will be around 30 km in the medium term. It’s the golden ratio extension. Also happens to be where CB & Finex got fat, asks lying around. “
On December 27, Cointelegraph reported that Bitcoin immediately saw great volatility, eventually losing 6.5% within the span of a few hours after its price hit $ 28,200 on major exchanges. Given that areas of resistance with a heavy sell order scan are facing major downturns, the USD 30,000 area could be a major block for Bitcoin in the near term.