According to data from Whale map, an on-chain analytics company tracking Bitcoin (BTC) whales, The $ 9,800 support has subsided.
Whalemap Researcher Track the activities of the whales by following the directions that belong to them (Individual investors who own large sums of BTC). They declared:
“Some HODLer activities yesterday. The bubbles show where these HODLer coins came from. The largest bubbles come from the area in front of the crown at 9800. To me this means that our support at 9800 has waned a bit. “
Several groups of $ 9,800 whales have grown in size in the past few days. The data suggest that Whales that bought for $ 9,800 are moving their BTCs on exchanges.
The most important Bitcoin whale groups on the daily Bitcoin price chart. Source: Whale map
Bad news if Bitcoin drops below $ 10,000
Given the data showing that some whales that bought for $ 9,800 may be preparing to sell, it could be argued that support has waned.
However, if the weakening of support causes BTC to drop below $ 9,800, that’s a different scenario.. The $ 9,800 level is weaker than before. But that doesn’t necessarily mean that BTC will fall as a result.
A short-term bearish scenario could develop as other whales push BTC to the $ 9,800 support level. Only then could weak support exacerbate BTC’s slowdown in the short term.
If Bitcoin doesn’t drop below $ 10,000 in the near future, the support level itself will become less relevant.
The red bubbles on the whale map charts grow as the whales pull their money out of their walletss. The researchers stated:
“The red bubbles indicate locations where the Hodlers originally had their BTC before they processed the transaction. Imagine you bought Bitcoin at its peak of $ 20,000 and decided yesterday to send it to an exchange, for example. In this scenario, at the height of 2017, a red bubble appears. “
Short term, A bearish case for BTC is that whales that bought for $ 9,800 are selling over $ 11,000, bringing the price of a pullback down to less than $ 10,000.
On August 23, Cointelegraph reported that whales that bought Bitcoin in late 2018 were sold two years later. Since then, The price of BTC fell sharply on major exchanges from $ 12,500 to just $ 9,800.
Like the end of August Bitcoin has a high timeframe resistance of $ 11,100. A sell-off of whales at current levels could trigger a significant pullback and a strong market reaction.
There’s also a highly anticipated $ 9,600 CME gap, and the $ 11,100 rejection could lead institutions to try to fill that gap.
What do traders think?
For now, The mood around Bitcoin remains largely positive. Bitcoin has held over $ 10,700 after its recent minor rejection of $ 11,100.
The 1 hour bitcoin chart with key levels. Source: Michael van de Poppe
Michael van de Poppesaid a full-time afternoon on the Amsterdam Stock Exchange The chances of a retest of $ 11,100 are higher. Said:
“The range of USD 10,750 was maintained and we are aiming for the high range again. The key factor in the continuation of the uptrend is $ 11,100-11,300. If that collapses, we’re heading towards $ 12,000. “