Since reaching $ 19,484, the price of Bitcoin has struggled to recover from the $ 17,000 to $ 18,000 level. As the price continues to fall, traders are targeting key underlying support levels to determine where traders will buy if the price of Bitcoin (BTC) continues to fall.
The immediate support levels based on the whale clusters are $ 16,694, $ 16,411 and $ 16,064. Below the support of $ 16,000, $ 15,355, $ 14,914 and $ 13,740 could serve as areas of macro support.
Whale clusters form when whales accumulate BTC and do not transfer their recently acquired funds. The clusters also indicate where the whales last bought, which signifies potential areas of support.
$ 16,411 is the near term level to watch for Bitcoin
The price of Bitcoin has weakened over the past 24 hours. Following such a large correction, some consolidation is to be expected as prices seek stability.
A positive trend is for buyers to vigorously defend the $ 16,411 support zone, which is marked by clusters of whales. This shows that there is sufficient buyer demand in the market to avoid a wider pullback, at least in the short term.
On November 27, Bitcoin tested the support range of $ 16,200 to $ 16,400 twice in 22 hours. Both new tests met with a decent response from buyers, with BTC topping $ 16,800 in both cases.
For most of the day, Bitcoin has remained above $ 17,000 and peaked at $ 17,400, showing signs that BTC is regaining momentum.
Still, some traders are not ruling out the possibility of BTC falling into the lower macroeconomic support areas. A pseudonymous trader known as “Wolf” said the weekly chart was showing signs of overextension. As such, he said the $ 13,000 region could be tested. The merchant Explain:
“Unlike $ ETH, $ BTC seems much more extensive than the weekly 21EMA, still far from being an interesting support. My ideal entry would be the major support described @ 13k. Currently, we could maintain weekly support 16213, then move down for an ABC correction. “
Another pseudonymous trader known as “Crypto Capo” suggested a similar trend. he said that he sees a scenario unfold where BTC rises to $ 18,000 and then falls to the region of $ 13,000.
$ BTC USD 6 hours
Interesting price action means more technical analysis. I expect the trend to calm down here. $ 17,214 is the key level to watch, daily close below here and expect us to move to test the .382 level.
I love these conditions. pic.twitter.com/nGobpRAXiN
– Koroush AK (@KoroushAK) November 26, 2020
Traders expect Bitcoin consolidation to last for weeks
While there are short-term bearish predictions from longtime Bitcoin investors, some technical analysts believe that the consolidation could take some time.
Michael van de Poppe, a full-time trader at the Amsterdam Stock Exchange, said the market was facing a healthy pullback. Following the correction, Poppe said the consolidation could take several weeks. he said:
“Relax and zoom out, the market makes a healthy correction and gives everyone a great opportunity to invest. Do not be impatient, the market will create a natural backdrop to confirm its entry. It only takes weeks.
In the near term, the area of immediate interest to buyers remains the three levels of whale clusters at $ 16,694, $ 16,411 and $ 16,064. If BTC falls below these levels convincingly, the likelihood of a deeper correction could increase dramatically.
Following the sharp drop in the price of Bitcoin, the whale clusters are showing several areas as key support levels. These levels could allow BTC to stabilize and regain momentum in the near term.