Bitcoin’s whale clusters point to 3 key levels for BTC’s price rebound to continue
The new Whalemap data reveals three groups of whales worth around USD 12,000 that should act as support and resistance areas for the Bitcoin price in the short term.
According to Whalemap, there are three major clusters of Bitcoin whales (BTC) in the short term that could serve as key technical levels. The USD 11,857, USD 12,256 and USD 12,868 levels would likely act as important support and resistance areas.
In previous cycles, whale activity coincided with major price movements at key technical levels. For example, Cointelegraph reported that one whale sold for USD 12,000 after „HODLing“ for years. In the coming weeks, BTC fell to less than USD10,000.
What are whale clusters and why are they important?
Whale clusters are formed when whales buy Bitcoin and do not move their BTC holdings. This indicates that whales are accumulating BTC in the areas where clusters materialize.
The largest group of Bitcoin whales has formed at $11,857, with previous clusters ranging from $11,288 to $11,465. In the short term, this means that $11,857 is considered a large support area for the whales.
Now, Bitcoin would have to remain above USD 11,857 or consolidate above it to see a wider rebound. The ideal technical structure for a continued upturn would be to stabilise at US$11,900.
After a major rally, some consolidation to neutralize the futures market could make the current uptrend healthier.
Since October 2nd, in just over three weeks, the price of Bitcoin rose by 24% against the US dollar. Over the same period, gold has risen slightly by 0.2%, as BTC outperformed most risky and safe-haven assets.
For most of the rally, the futures market showed neutral or negative funding rates. As such, the rally itself was not overly heavy and is not in danger of a large withdrawal.
Even so, a corrective price movement after a month of steady rebound could further stabilise the upward movement.
Why do whales accumulate BTC at these prices?
Whales could have been buying from the first USD 11,000 to USD 12,000 due to the context of the current upturn.
Technically, Bitcoin broke out of a three-year range, with the daily chart confirming the highest price point since January 2018. As reported by Cointelegraph, Bitcoin’s daily candlestick has never closed above USD 12,900 for nearly three years.
In addition to the technical reasons, Bitcoin’s perception as a potential competitor to gold is also strengthening along with the fundamentals of the network. As a result, institutional demand for BTC has skyrocketed, as seen by the rise in CME’s Bitcoin futures market.
Meanwhile, researchers at Santiment, an on-chain market analysis firm, note that BTC appears to be decoupling itself from other markets. Throughout the historical bullish cycles, when BTC demonstrated independent price movements, it caused momentum to strengthen. They said:
„BTC has historically thrived when its dependence on world markets and other asset classes and industries is minimal, and trading can be conducted independently without the interference of non-crypting events as distractions“.
The confluence of BTC resistance above USD 11,900, a major whale cluster, as well as several favourable technical factors may help the BTC/USD to dominate several short term downward signals to sustain the current rally.