The Bitcoin (BTC) whale cluster shows that the $23,409 level has become an area of concern for large traders. This shows that whales continue to accumulate above $23,000, which has driven the continued bull market.
When whales buy Bitcoin and do not transfer their BTC holdings from the purchase price, a whale cluster is formed. Clusters are useful for determining the level of support for Bitcoin, especially in a rapidly changing market.
“No less than 23,409 USD”
According to analysts at Whalemap, a data analysis company that tracks Bitcoin whale activity, BTC has formed a strong bottom line between $23,000 and $23,500. they said:
Surprisingly, a large amount of losses flowed to the chain at a price of $19,000. When this happens in a bullish situation, Bitcoin will give us a good uptrend (the last time it was 10,000 to 20,000). We have also provided multiple strong supports at the most recent price…no less than $23,409. “
Due to the risk of sudden corrections, it is important for Bitcoin to establish a solid support area during the bull market. If the whale cluster appears at a high price, such as $23,409, then the bid of the whale may be slightly higher and maintain the momentum of Bitcoin.
Long-term trader Peter Brandt pointed out that the Bitcoin parabola, which dates back to October, is a key area of concern.
The line indicates that $24,000 is a key support area, which means that BTC needs to stay above it to prevent a sharp drop. Brandt wrote:
“Bitcoin $ BTC has been parabolic starting from the low in September 20. I hope that this curve will be violated at some point, but it will not cause an 80% decline. The green curve is from December 2018 and March 2020. The bigger parabolic gain since the monthly low. This is the driving force of the bull market.”
In the near term, whales and parabolic trend lines show that $23,409 and $24,000 are two key levels that Bitcoin must hold.
Below $24,000, the chances of speeding up the correction increase, and if it violates the whale pack support area, it may get worse.
Where will BTC reach its peak?
Traders generally believe that Bitcoin may rise to two levels: $30,000 and $36,000. The latter has become a popular near-term forecast, as the options market indicates that it is likely to reach $36,000 in the next few months. Of course, the former is the key psychological level.
A pseudonymous trader named “General Byzantium” said that he expects Bitcoin to reach as high as $30,000. He explained that $30,000 is the “golden ratio expansion” level, and there are sell orders on Coinbase and Bitfinex. He said:
“I think this rebound will exceed 30,000 in the mid-term. This is an extension of the golden ratio. It also happens to be placed where CB and Finex get fat.”
On December 27, Cointelegraph reported that Bitcoin immediately experienced sharp fluctuations, and the final price fell by 6.5% within a few hours after the price of several major exchanges reached $28,200. Given that there will be a sharp correction in the resistance area where sell orders are heavy, the $30,000 area may become a major short-term obstacle for Bitcoin.