Bitcoin (BTC) whale clusters are pointing at the key support level of US$23,409, creating a strong floor for the ongoing rally to continue. The accumulation of whale clusters at this level indicates that the large traders are focusing on the US$23,409 key support level so that a bull run continues above the US$23,000 level.
Whale clusters are formed when large traders buy Bitcoin and don’t move their BTC holdings from the purchase price. This is an important indicator to determine the support levels of Bitcoin, especially when there is a rapid movement in the market.
A data analytics firm tracking Bitcoin whale activity, Whalemap, said: “Surprisingly large amounts of losses were flowing on-chain at 19k prices. When this happens in bullish conditions BTC gives us nice rallies (10k-->20k last time). We have multiple strong supports at recent prices as well... Should not be going lower than $23,409.”
A strong floor has been formed in the US$23,000-23,500 range. Establishing key support areas is very important for Bitcoin especially during a bull run because there always remains the risk of sudden corrections. When whale clusters form at higher price levels such as the one in this case around US$23,409, there are high chances that they will bid slightly higher than this level, which will ultimately sustain the momentum of Bitcoin.
A pro trader, Peter Brandt, has pointed out the parabolic Bitcoin line formed during October 2020. According to him, this is a major level everyone should keep an eye on. This parabolic line indicates a key support area at US$24,000. Peter has warned that there could be a large drop if BTC is not able to stay above the US$24,000 level. He said: “Bitcoin $BTC is advancing in parabolic move from Sep '20 low. I expect this curve to be violated at some point, but not to produce 80% decline. Green curve is a larger parabolic advance from Dec 2018 & Mar 2020 lows. This is the driver of bull market.”
The whale clusters and the parabolic trendline show that the two major levels that Bitcoin must hold are US$23,409 and US$24,000. If BTC falls below the US$24,000 level, there are high chances that there will be an increase in acceleration of correction. The downward price movement may worsen if there is a breach below the whale cluster support at US$23,409.
On the upside, Bitcoin could rise to two key levels in the near-to-mid-term. While one is a key psychological level and the “golden ratio extension” level at US$30,000, the second one is the US$36,000 level.
A pro trader with the pseudonym “Byzantine General” has said: “I think this rally tops out mid-term around 30k. It's the golden ratio extension. Also happens to be where CB & Finex got fat asks laying around.”