Bitcoin Whale Clusters Suggest Three Close Major Levels for BTC Price Rally
A new report coming from Whalemap unveils three whale clusters around $12,000 that should serve as support and resistance zones for Bitcoin value in the short term. As per the data collected by the company, there are thee key Bitcoin whale clusters in the near term that might act as significant technical levels.
The $11,857, $12,256, and $12,868 lines would probably act as necessary support and resistance zones. In prior cycles, whale activity matched major price movements at vital technical levels. For instance, a whale sold at $12,000 after ‘HODLing’ for years; in the next few weeks, BTC plummeted to sub-$10,000.
Bitcoin whale clusters. [Image Source: Whalemap.io]
Whale Clusters and Their Importance
Whale clusters form when whales purchase Bitcoin and do not move their BTC holdings. This suggests that whales are collecting BTC in the zones where the clusters show up. The most significant Bitcoin whale cluster has taken form at $11,857, with prior clusters at $11,288 to $11,465. In the near term, that indicates that the $11,857 is believed to be a significant support area by whales.
Now, Bitcoin would have to stay above $11,857 or stabilize above it to enable a broader rally. The perfect technical structure for a rally continuation would be to consolidate at $11,900. After a significant rally, some stabilization to neutralize the futures market could make the uptrend head even higher.
Since October 2nd, the price of Bitcoin went up 24 percent against the U.S. dollar. During the same period, gold has risen by 0.2 percent as BTC exceeded most risk-on and safe-haven assets.
BTC/Gold. [Image Source: Skew]
During most of the rally, the futures market showed negative or neutral funding rates. Therefore, the rally itself was not extraordinarily overcrowded and is not at risk of a significant pullback. Still, a corrective price activity following a month of continual rallying could further consolidate the upward movement.
In the meantime, researchers at Santiment, an on-chain market analytics company, emphasize that BTC seems to be decoupling from other markets. During historical bull cycles, when Bitcoin showed independent price movements, it made the momentum strengthen.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.