Whale clusters in Bitcoin show that $14,914 is a decisive level for the continuation of the bullish trend
New data provided by Whalemap suggests that to maintain the bullish momentum, the price of Bitcoin must remain above the $14,914 level.
Whale clusters, depicted as bubbles in the chart below, are formed when investors with high net worth buy Bitcoin and do not move them. This indicates that whales have accumulated BTC at that level, which will probably act as a support zone in case of correction.
So in the short term, it is crucial to stay above $14,914 for an extended period of time. This scenario would indicate the consolidation of Bitcoin under a multi-year resistance at $16,000 and stability above an important support level.
Whale Cluster in Bitcoin
Whale cluster in Bitcoin. Source: Whalemap
What keeps BTC’s price above $14,914?
During the last week Bitcoin has witnessed an unusual price action, with considerable volatility in a wide range.
From 6 to 9 November, BTC tested the $16,000 level twice and slipped to $14,350. This short-term volatility is probably linked to a number of macro events, including the disputed results of the US election.
Since early November, the market has seen the arrival of several risks. The elections have benefited Bitcoin considerably, with investors looking for safe haven assets. Subsequently, Pfizer’s vaccine announcement came into play as an unexpected variable, causing Bitcoin and gold to collapse.
Despite these uncertainties, Bitcoin remained well above the $13,600 level indicated by Whalemap:
„New levels formed over the weekend! If we start moving in a range this should be a good guide to determine the levels in question. The price must remain above ~13,600$ to continue the bull run“.
In the short term, the range between $13,600 and $14,914 remains the most important for the continuation of the Bitcoin rise. So far, BTC’s momentum has been relatively strong, considering the miners‘ sell-off.
As noted by Cointelegraph, Ki Young Ju, the CEO of CryptoQuant, explained in an interview that the miners are selling Bitcoin. Looking at BTC’s resilience, it is likely that the new purchase demand has neutralized the miners‘ selling pressure.
Investors face a crossroads
Bitcoin is experiencing high volatility due to uncertainty in the market. As indicated by some on-chain indicators, BTC is entering oversold territory and investors could take advantage of this to make profits. Philip Swift, an analyst in the crypto market, commented:
„The Relative Unrealized Profit/Loss indicator has arrived in the ‚Greed‘ area with the latest Bitcoin increase. It sounds bad but we can actually spend a large part of the bullish cycle in this area. We are still in the early stages with a lot of upward space“.
Other key parameters indicate that Bitcoin is still in the early stages of a bull run. For example, HODL activity continues to grow and research suggests that the bullish trend has been largely fuelled by smart money.
The lack of clarity about the direction of Bitcoin is visible in both the unusual price action and the conflicting signals provided by on-chain data. However, as long as the main cryptocurrency remains above $14,914, the outlook remains cautiously optimistic, at least in the short term.