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New data from Whalemap suggests that in order to maintain bullish momentum, the price of Bitcoin must remain above the $ 14,914 level.
Clusters of whales, like the bubbles shown in the chart below, form when high net worth investors buy Bitcoins and don’t move them. This indicates that the whales have accumulated BTC at this level and suggests that there will likely remain an area of support if corrected.
As such, in the short term it is essential that Bitcoin remains above $ 14,914 for an extended period. This would mean consolidation below multi-year resistance at $ 16,000 and stability above a major support level.
What keeps the BTC price above $ 14,914?
Over the past week, Bitcoin has seen some unusual price action and has been quite volatile across a wide range.
From November 6 to November 9, BTC tested the $ 16,000 level twice and fell to $ 14,350. This short-term volatility was likely linked to a series of macroeconomic events, including the “contested” US election results.
There have been a number of significant risks in the market since early November. The electoral risk has benefited Bitcoin significantly, as investors seek safe-haven assets. Then, Pfizer’s vaccine breakthrough became an unexpected variable, causing Bitcoin and gold to fall.
Despite these uncertainties, Bitcoin has remained comfortably above $ 13,600, a level that Whalemap analysts have identified. They wrote:
“New levels that have formed over the weekend! If we start to vary this should be a good guide to what the levels should be. The price should stay above around $ 13,600 to continue the bull run. “
In the short term, the range of $ 13,600 to $ 14,914 remains the most important for the Bitcoin rally to continue. So far, the momentum for BTC has been relatively strong, as miners sell.
As Cointelegraph previously reported, CryptoQuant CEO Ki Young Ju said in an interview that miners were selling Bitcoin. Based on the resilience of BTC, the new demand from buyers has likely offset selling pressure from miners.
Investors are at a crossroads
Bitcoin is experiencing massive volatility as the market is uncertain. Some on-chain indicators point to BTC entering an oversold zone where investors could turn a profit. Philip Swift, a cryptocurrency analyst, wrote:
“Relative Unrealized Profit / Loss Indicator: Has now entered the ‘Greed’ zone on this latest #bitcoin push. It sounds bad, but in fact we can spend a lot of the bull cycle in this area. We are still ahead with a lot more room for maneuver. “
But other fundamental metrics indicate that Bitcoin is still at the start of a bull run. For example, HODLing activity continues to increase and research suggests that smart money has fueled most of the uptrend.
The lack of clarity in Bitcoin’s direction is shown by both the unusual price action and the mixed messages from the on-chain data points. Still, as long as the major cryptocurrency stays above $ 14,914, at least in the near term, the outlook remains cautiously optimistic.
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