According to Whalemap, There are three large short-term Bitcoin (BTC) whale clusters that can serve as essential technical layers. The $ 11,857, $ 12,256 and $ 12,868 levels are likely to act as important areas of support and resistance.
In previous cycles, whale activity coincided with significant price movements at crucial technical levels. For example, Cointelegraph reported that a whale was sold for $ 12,000 after “HODLing” for years. In the following weeks, BTC dropped to less than $ 10,000.
What are whale clusters and why are they important?
Whale clusters are formed when whales buy Bitcoin and do not move their BTC properties. This indicates that whales are accumulating BTC in the areas where the clusters materialize.
The largest Bitcoin whale pool formed at $ 11,857, with previous groups from $ 11,288 to $ 11,465. In the short term, this means that $ 11,857 is considered a large support area for whales.
Now, Bitcoin would have to stay above $ 11,857 or consolidate above to see a broader recovery. The ideal technical structure for the continuation of the rally would be to stabilize at $ 11,900.
After a big recovery, Some consolidation to neutralize the future market could make the current upward trend healthier.
Since October 2, in just over three weeks, Bitcoin’s price rose 24% against the US dollar. In the same period, gold rose slightly by 0.2%, as BTC outperformed riskier assets and safe havens.
During most of the hike, the futures market showed neutral or negative financing rates. Therefore, the rally itself was not overloaded and there is no risk of a major setback.
Even so, a corrective price move after a month of constant upturn may further stabilize the upward movement.
Why are whales accumulating BTC at these prices?
Whales could be buying in the first $ 11,000 to $ 12,000 due to the context of the current rally.
Technically, Bitcoin broke a three-year range, with the daily chart confirming the highest price point since January 2018. As Cointelegraph reported, Bitcoin’s daily candle has never closed above $ 12,900 for nearly three years.
In addition to technical reasons, the perception of Bitcoin as a potential gold competitor is also strengthening along with the fundamentals of the network. In consequence, Institutional demand for BTC has skyrocketed considerably, as seen by the rise of the Bitcoin CME future market.
Meanwhile, researchers at Santiment, a chain market analysis firm, point out that BTC appears to be separating itself from other markets. Throughout the historic bullish cycles, when the BTC demonstrated independent price movements, it caused the momentum to strengthen. They they said:
“BTC has historically thrived when its dependence on world markets and other asset classes and industries is minimal, and trade can operate independently, without interference from non-cryptographic events like distractions.”
The confluence of BTC resistance above $ 11,900, a major cluster of whales, as well as several favorable technical factors may help the BTC / USD pair to dominate several short-term bearish signals to sustain the current high.