Home » Bitcoin » Bitcoin technicals sour as price dives under $54K and two critical whale clusters

Bitcoin technicals sour as price dives under $54K and two critical whale clusters

Whale cluster analysis suggests that both hodlers and whales were responsible for the latest sell-off.

Bitcoin has dropped below $54,000 on April 20 while whale clusters suggest that the key areas for BTC to reclaim in the short term are $56,274 and $55,172.

The cryptocurrency market began to drop once again after an initial relief rally on Monday. Bitcoin dropped from $57,400 to sub-$54,000, losing the $55,172 whale cluster support level.

In the near term, it is crucial for Bitcoin to rally above $55,172 and reclaim it as a support level. Otherwise, it is at risk of testing the $51,000 macro support area.

Why are whale cluster support areas important?

Whale clusters form when whales or high-net-worth investors purchase or sell a significant amount of Bitcoin.

Since whales tend to purchase Bitcoin at an area they previously bought at to defend their position, whale clusters are often a positive indicator of strong support areas

Analysts at Whalemap, a data analytics platform that tracks whale activity, noted that there is a lot of whale volume at $58,000.

In the short term, with $58,000 acting as an area of interest, the analysts said $56,274 and $55,172 are the key near term levels to watch.

The analysts said:

If Bitcoin does not reclaim $56,274 and continues to decline, it would mean that whales are not adding to their existing positions.

If this is the case, the $51,000 macro support level would be at risk of being tested once again, as Cointelegraph previously reported.

The $51,000 level is critical because if that breaks, it would cause the higher low structure of Bitcoin to break down, which may put the entire Bitcoin bull market in danger.

“These are the key levels to look out for right now,” Whalemap analysts added.

Both whales and hodlers responsible for sell-off

On April 18, the price of Bitcoin fell sharply from the $60,000 mark to nearly $50,000 on the day’s lowest point.

According to the analysts at Whalemap, it weren’t just long-time holders that sold, but also whales and high net worth investors.

They wrote:

Based on this trend, it is difficult to speculate whether Bitcoin would see a major rally in the near term and resume its uptrend once more. 

Several notable traders shared a similar sentiment. Pseudonymous trader, “Trader XO,” said that while he is not bearish he does sees the potential of a deeper retracement.

He said:

Source

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