The price of Bitcoin (BTC) is attempting to break the $60,000 resistance level after more than a week of ranging.
Whale clusters show that $57,046 and $60,045 are the crucial support and resistance areas in the short term.
In other words, the probability of a strong breakout in the foreseeable future would increase substantially if Bitcoin stays above $57,046 and continues to test $60,000 resistance.
Why whale clusters are important for Bitcoin
Whale clusters form when high-net-worth investors buy or sell Bitcoin at a certain price and do not move their holdings thereafter.
As such, a whale cluster support typically serves as a strong macro support area for Bitcoin because whales tend to buy more when BTC falls to a level where they initially bought BTC.
On the flip side, a whale cluster resistance area would likely hold up as a sell area because whales are more likely to wait until their breakeven price to sell their positions.
According to researchers at Whalemap, the two key resistance levels for Bitcoin in the near term are $60,045 and $61,062. On Wednesday, the researchers noted:
“$BTC is back. Bouncing perfectly from whaleTitle: Whale clusters suggest that this key Bitcoin level can trigger an explosive rally
Sourced From: cointelegraph.com/news/whale-clusters-suggest-that-this-key-bitcoin-level-can-trigger-an-explosive-rally
Published Date: Tue, 06 Apr 2021 09:37:01 +0100