Whale Groups of Bitcoin (BTC) shows that the level of $ 23,409 has become a focus area for large traders. This indicates that the current bull run is driven by whales that are still accumulating more than $ 23,000.
Whale groups form when whales buy Bitcoin and their BTC holdings do not shift from the purchase price. Clusters are handy for determining Bitcoin’s support levels, especially if the market is moving fast.
“Do not rise below $ 23,409”
According to analysts at Whalemap, a data analytics firm that monitors Bitcoin whaling activity, BTC formed a strong floor in the $ 23,000 to $ 23,500 range. They said:
‘Surprisingly large amounts of losses flowed at 19,000 prices on the chain. If this happens in bullish conditions, BTC gives us nice rallies (last time 10k -> 20k). We also have very strong support at recent prices … Do not rise below $ 23,409. ”
It is important for Bitcoin to establish solid support areas during a bull run due to the risk of sudden corrections. If whale groups are present at high price levels, such as $ 23,409, whales are likely to bid slightly higher and maintain the momentum of Bitcoin.
Peter Brandt, a longtime trader, has identified the parabolic line of Bitcoin dating back to October as an important area to look at.
The line indicates $ 24,000 as the critical support area, which means BTC needs to stay above it to prevent a big drop. Brandt wrote:
“Bitcoin $ BTC progresses in parabolic movement from September ’20 low. I expect this curve to be violated at some point, but that it will not cause an 80% decrease. Green curve is a larger parabolic advance from December 2018 and March 2020 lowest. It is the driver of the bull market. ”
In the short term, the whale groups and the parabolic trend line show that $ 23,409 and $ 24,000 are the two key levels that Bitcoin should hold.
Below $ 24,000, the chances of an accelerated correction increase, which could be exacerbated if whaling cluster support areas are violated.
Where will BTC come from?
Traders generally believe that Bitcoin could rise to two levels: $ 30,000 and $ 36,000. The latter has become a popular short-term forecast as the options market indicates a high probability that $ 36,000 will be hit in the coming months. Of course, the former is an important psychological level.
A pseudonymous trader, known as ‘Byzantine general’, said he predicted that Bitcoin would amount to $ 30,000. He explained that $ 30,000 is the level of ‘expanding the gold ratio’ and that it also has sales orders on Coinbase and Bitfinex. He said:
‘I think this rally is about 30 dives in the medium term. This is the extension of the golden ratio. This is also where CB & Finex got fat. ”
On December 27, Cointelegraph reported that Bitcoin immediately saw great volatility and eventually plunged 6.5% within a matter of hours after the price reached $ 28,200 across the major exchanges. Given the resistance areas with a large sell order scan with large backlinks, the $ 30,000 area could provide a major short-term roadblock for Bitcoin.