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Bitcoin whale clusters signal 3 key levels for the BTC price rally to continue

October 24, 2020

According to the whale map There are three major short-term Bitcoin (BTC) whale clusters that could serve as important technical layers. The $ 11,857, $ 12,256, and $ 12,868 levels would likely act as major areas of support and resistance.

In previous cycles, whale activity coincided with significant price movements at key technical levels. For example, Cointelegraph reported that after “HODLing” a whale sold for $ 12,000 for years. Over the next few weeks, BTC fell to less than $ 10,000.

Bitcoin whale cluster. Source: Whalemap.io

What are whale heaps and why are they important?

Whale heaps are created when whales buy Bitcoin and don’t move their BTC stocks. This indicates that the whales are accumulating BTC in the areas where the clusters materialize.

Bitcoin whale clusters signal 3 key levels for the BTC price rally to continue
Bitcoin whale clusters signal 3 key levels for the BTC price rally to continue

The largest Bitcoin whale pool has formed at $ 11,857, with previous clusters ranging from $ 11,288 to $ 11,465. In the short term, it means $ 11,857 is considered a great whale support area.

Now, Bitcoin would have to stay above $ 11,857 or consolidate above to see a wider rally. The ideal technical structure for the rally to continue would be stabilization at $ 11,900.

After a big boom A certain amount of consolidation to neutralize the futures market could make the ongoing upward trend healthier.

Since October 2nd in just over three weeks Bitcoin’s price rose 24% against the US dollar. Over the same period, gold is up slightly by 0.2% as BTC outperformed most risky and safe assets.

For most of the rally, the futures market showed neutral or negative funding rates. As, The rally itself has not been very congested and there is no danger of a major retreat.

Even so, A corrective price move after a month of steady rally could further stabilize the bullish move.

Why do whales accumulate BTC at these prices?

The whales could have bought from the first $ 11,000 to $ 12,000 based on the context of the current rally.

Technically, Bitcoin broke a three-year range, with the daily chart confirming its highest price since January 2018. As Cointelegraph reported, Bitcoin’s daily candle has never closed more than $ 12,900 in nearly three years.

In addition to technical reasons, in addition to the fundamentals of the network, the perception of Bitcoin as a potential competitor to gold is also increasing. As a result Institutional demand for BTC has increased significantly, as evidenced by the rise of the CME bitcoin futures market.

Meanwhile, researchers from Santiment, an on-chain market research firm, point out that BTC appears to be decoupling from other markets. The momentum increased during the historical bull cycles in which BTC showed independent price movements. you they said::

“BTC has done well in the past when reliance on world markets and other asset classes and industries is minimal and trading can be operated as a distraction regardless of disruption from non-crypto events.”

The confluence of BTC resistances above $ 11,900, a large whale cluster, as well as several favorable technical factors can help the BTC / USD pair dominate various short-term bearish signals to sustain the current rally.