Home Cryptocurrency Bitcoin whale clusters pinpoint 3 levels in the short term to keep the bull trend intact

Bitcoin whale clusters pinpoint 3 levels in the short term to keep the bull trend intact

by Serge Shlykov

The price of bitcoin (BTC) is consolidating between $55,000 and $56,000 after failing at $61,000. The whale clusters suggest that a key level needs to be protected to prevent a fall to the $40,000 range.

According to Whalemap, which tracks whale activity in bitcoin, $55,406 is a critical support area for the whale cluster.

If bitcoin drops below $55,406, analysts at Whalemap point out that a drop to $47,438 is the next likely development.

Whale Cluster. Source: Mapping whales

What are whale clusters and why bitcoin could experience a deeper correction.

Whale hoarding occurs when whales or large investors buy or sell bitcoins and do not resell them.

Since whales tend to buy on a dip to the entry level or sell on an equilibrium basis after a correction, whale groups tend to serve as support and resistance levels.

With bitcoin currently above $55,406, this level is considered a key support area for the Wal Cluster. Therefore, bitcoin needs to stay above this threshold in the short term to avoid a large drop that could lead to a cascading liquidation.

Putting money into bitcoins. Source: Bybt.com.

Bitcoin whale clusters pinpoint 3 levels in the short term to keep the bull trend intact

From 15 to 16 years old. More than $2 billion worth of futures contracts were liquidated in March, according to data from Bybt.com, bringing the funding ratio back to normal levels.

With the reset of the futures market, as long as bitcoin remains well above $55,406, the likelihood of a major correction is significantly reduced.

Whalemap researchers stated:

55406 a big level we need to stick to. Otherwise, a drop to 47438 is likely. However, 47438 is quite strong… Many Whale wallets have acquired #Bitcoin at this level and are still holding it.

Nevertheless, if bitcoin falls back below $50,000, it will be in the danger zone. The range is between $45,000 and $47,000. The $1.5 billion is one of the key areas of macroeconomic support.

Given the upside risk to 10-year U.S. Treasuries, a potential drop below $50,000 could result in a significant weakening of BTC momentum in the near term.

Based on these scenarios, bitcoin accumulation is expected to remain above $55,000.

Don’t worry, Stoke to Flow (S2F) on route

While bitcoin struggles with a key support area, the BTC/USD pair is fully aligned with the popular stock-to-flow (S2F) pricing model, which sets an end-of-year target of $100,000.

A pseudonymous trader known as Rekt Capital noted that S2F is not only on course to hit its next price target, but could potentially see divergences to the upside.

Stock-stock flow model with variances. Source: Lookintobitcoin.com, Rekt Capital

Bitcoin whale clusters pinpoint 3 levels in the short term to keep the bull trend intact

An upward spread occurs when an asset outperforms the model price. The trader said:

Upward divergences in #BTC prices above the stock flow line tend to precede bull market tops. The #BTC has had 5 major upward divergences in its history. In this current bull market, #Bitcoin will see its 6th high.

Short term whale clusters can provide some context on where the price of BTC will go in the near future, usually in a week or two.

But long-term models, such as S2F, can be used to test whether bitcoin’s overall bullish momentum is sustainable in the coming months and years.

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