Bitcoin large-scale investment analyst Whalemap has indicated three major Bitcoin whale clusters in short term trading. According to the data collator, the three levels will point towards key technical levels to consider, acting as both support and resistance levels.
As per Whalemap, the new levels to note are at the following price ranges for Bitcoin:
- $11,857 USD,
- $12,256 USD, and
- $12,868 USD
Whale bubble scene has changed. New levels are marked below 👇 pic.twitter.com/WDh5XHAuno
— whalemap (@whale_map) October 22, 2020
Trends in the Bitcoin market have historically moved when there is any significant activity from the Bitcoin whale clusters. This is because of the weight of the impact that large-scale investors have on the market. The whale clusters form when Bitcoin whales do not buy or move Bitcoin or transact their cryptocurrency holdings. This lack of activity implies that they are accumulating Bitcoin, which could lead to strong support. The danger comes should clusters decide to move Bitcoin and sell, which could lead to a crash in Bitcoin price.
Can Bitcoin rally with whale cluster and institutional support?
However, at present, sentiment surrounding the market is positive, and it appears as though stronger whale clusters are forming to support the token. This might lead to a major rally, as institutional investors add to their holdings. As reported recently, Grayscale, which controls over 2.4% of all Bitcoin in circulation, recently added a whopping $1 billion USD to its cryptocurrency holdings in just one week. This points towards a bullish adoption from the institutional investors.
Looking at the price of Bitcoin recently, the correlation aligns with Bitcoin gaining over 24% against the US dollar. In comparison, gold (as one of the safe-haven assets to hedge against the fiat economy) has only seen a 0.2% increase in trading value.
Should the uptick of the cryptocurrency market continue, the price of Bitcoin will likely see healthy growth heading into the new year.