Bitcoin whale clusters determine the key support level for the continuation of the rally

Bitcoin whale clusters determine the key support level for the continuation of the rally

Bitcoin (BTCWhale groups show that the $ 23,409 level has become the focus of the top traders. This indicates that the continued uptrend is supported by the whales continuing to accumulate above $ 23,000.

Whale groups are formed when whales buy Bitcoin and do not transfer their BTC holdings from the purchase price. Groups are useful in determining Bitcoin support levels, especially when the market is rapidly moving.

Bitcoin whale groups. Source: Whalemap.io

“It should not be less than 23,409 USD.”

According to analysts at Whalemap, a data analytics company that tracks Bitcoin whale activity, BTC has formed a strong floor in the range from $ 23,000 to $ 23,500. they He said:

“Surprisingly, large amounts of losses have been pouring into the chain at 19K. When this happens in bullish conditions, Bitcoin gives us nice rallies (10k -> 20k last time). We have many strong support at recent prices too … No It should be less than 23,409 US dollars. “

It is important for Bitcoin to create strong support areas during an uptrend due to the risk of sudden corrections. If whale groups are present at high price levels, such as $ 23,409, the whales are likely to bid slightly higher and maintain bitcoin’s momentum.

Longtime trader Peter Brandt has identified the Bitcoin parabola dating back to October as a key area to watch.

Daily BTC / USD price chart with trend lines. Source: TradingView.com, Peter Brandt

The line marks $ 24,000 as a critical support area, which means BTC needs to stay above it to prevent a big drop. Brandt Wrote:

“Bitcoin $ BTC is advancing in the parabola from the September 20 low. I expect this curve to be breached at some point, but not result in an 80% drop. The green curve is a greater parabola advance from the December 2018 and March 2020 lows. This is the engine of a bull market. “

In the near term, the whale groups and the equivalent trendline show that $ 23,409 and $ 24,000 are the two main levels Bitcoin should hold.

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Under $ 24,000, the chances of an accelerated correction increase, which could worsen if the whale group’s support zones are breached.

Where can BTC top?

Traders generally believe that Bitcoin can rise to two levels: $ 30,000 and $ 36,000. The latter has become a popular prediction in the near term because the options market indicates a high probability of $ 36,000 in the coming months. Of course, the first is a major psychological level.

A trader under a pseudonym known as “The Byzantine General” said he expects Bitcoin to be worth $ 30,000. He explained that $ 30,000 is the “golden ratio extension” level and also has sell orders on Coinbase and Bitfinex. he is He said:

“I think this rally is culminating in the mid-range at 30K. It’s the extension of the golden ratio. And it also happens to be where CB & Finex got beefy demand.”

On December 27, Cointelegraph mentioned Bitcoin immediately experienced huge volatility, eventually sliding 6.5% within a few hours after the price reached $ 28,200 across the major exchanges. Given that areas of resistance with a heavy sell order check are met with a significant pullback, the $ 30,000 area could represent a major short-term hurdle for Bitcoin.