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Analysis of Bitcoin Whale Clusters points to three key levels for BTC rallying to continue

New Whalemap data reveals three groups of whales worth about US$12,000 that are expected to act as areas of support and resistance for the price of Bitcoin in the short term.

According to Whalemap, there are three large clusters of Bitcoin whales (BTC) in the short term that can serve as important technical levels. The levels of US$ 11,857, US$ 12,256 and US$ 12,868 would likely act as important areas of support and resistance.

In previous cycles, whale activity coincided with significant price movements at crucial technical levels. For example, Cointelegraph published that a whale was sold for US$ 12,000 after „HODLing“ for years. In the following weeks, BTC fell to less than US$ 10,000.

What are clusters of whales and why are they important?

Clusters of whales form when whales buy Bitcoin and do not move their BTC properties. This indicates that whales are accumulating BTC in the areas where the clusters materialize.

The largest cluster of Bitcoin whales was formed for $11,857, with the previous clusters ranging from $11,288 to $11,465. In the short term, this means that the US$11,857 is considered a large support area for whales.

Now, Bitcoin would have to stay above US$11,857 or consolidate above to see a broader recovery. The ideal technical framework for the continuation of a rally would be to stabilize at US$11,900.

After a big bump, some consolidation to neutralize the future market could make the ongoing upward trend healthier.

Since October 2, in just over three weeks, the price of Bitcoin has risen 24% against the US dollar. In the same period, gold rose slightly by 0.2%, with the BTC outperforming most risk assets and safe havens.

During most of the hike, the futures market showed negative or neutral financing rates. As such, the rally itself was not very overcrowded and is not at risk of a major setback.

Still, a corrective price movement after a month of consistent recovery can further stabilize the upward movement.

Why are whales accumulating BTC in these price bands?

Whales may have bought from the beginning of US$ 11,000 to US$ 12,000 because of the current rally context.

Technically, Bitcoin has surpassed the three-year mark, with the daily chart confirming the highest price point since January 2018. As the Cointelegraph published, Bitcoin’s daily sail has never closed above $12,900 in the last three years.

In addition to technical reasons, the perception of Bitcoin as a potential competitor against gold is also strengthening along with the fundamentals of the network. As a result, institutional demand for Bitcoin Aussie System has increased considerably, as seen by the rise of the WEC’s Bitcoin futures market.

Meanwhile, researchers at Santiment, a networked market analysis firm, point out that BTC appears to be detaching itself from other markets. Throughout the historical bullish cycles, when BTC demonstrated independent price movements, momentum was strengthened. They said:

„The BTC $ has prospered historically when its dependence on world markets, and other asset classes and industries, is minimal, and trading can operate independently without interference from non-cryptographic events such as distractions.

The confluence of BTC’s resilience above $11,900, a major whale cluster, as well as several favorable technical factors can help BTC/USD overcome several short-term bearish signals to maintain the current rally.