The Bitcoin whale cluster shows $23,409 as a key support area, which means the ongoing rally has a strong base.
Bitcoin Whale Clusters (BTC) show that the $23,409 level has become a focus area for large traders. This indicates that the ongoing bullish run is driven by whales that continue to accumulate more than $23,000.
Whale clusters are formed when whales buy Bitcoin and do not move their BTC holdings from the purchase price. Clusters are useful for determining Bitcoin support levels especially when the market moves fast.
„Support must not be less than US$ 23,409“.
According to analysts at Whalemap, a data analysis company that tracks Bitcoin whale activity, BTC has formed a strong floor in the $23,000 to $23,500 range. They said:
„Surprisingly, large amounts of losses were flowing into the chain at prices of 19,000. When this happens in bullish conditions, BTC gives us great highs (10k -> 20k last time). We have several strong supports at recent prices too … It shouldn’t be less than US$ 23,409“.
It is important for Bitcoin to establish solid support areas during a bull ride due to the risk of sudden corrections. If whale clusters are present at high price levels, such as $23,409, then whales will probably bid a little higher and maintain Bitcoin’s momentum.
Peter Brandt, a long time trader, identified the Bitcoin satellite line that dates back to October as a key area to be observed.
The line indicates $24,000 as the critical support area, which would mean that BTC needs to stay above it to avoid a big drop. Brandt wrote:
„Bitcoin is advancing in parabolic movement since the September 20 low. I hope this curve will be breached at some point, but will not produce an 80% decline. The green curve is a larger parabolic advance than the December 2018 and March 2020 lows. This is the engine of the rising market. ”
In the short term, the whale groups and the parabolic trend line show that US$ 23,409 and US$ 24,000 are the two key levels that Bitcoin should maintain.
Below $24,000, the chances of an accelerated correction increase, which may get worse if the whale cluster support areas are violated.
Where is the top of Bitcoin?
Traders generally believe that Bitcoin can rise to two levels: $30,000 and $36,000. The latter has become a popular short-term forecast because the options market indicates a high probability of $36,000 being hit in the coming months. Of course, the first is a fundamental psychological level.
A trader’s alias known as „General Byzantine“ said he predicts Bitcoin to reach $30,000. He explained that $30,000 is the level of „gold ratio extension“ and also has sales orders at Coinbase and Bitfinex. He said:
„I think this rally ends midway around 30k. It’s the extension of the golden ratio. It also happened to be where CB & Finex got fat questions out there“.
On December 27, the Cointelegraph reported that Bitcoin immediately saw great volatility, losing 6.5% in a matter of hours after the price reached $28,200 on the major exchanges. Given that the resistance areas with large sales order scanning face large setbacks, the $30,000 area may represent a major short-term obstacle for Bitcoin.