Data Suggests Whales are Keen on Protecting One Key Bitcoin Support Level
- Bitcoin has seen some choppy price action throughout the past couple of days, with buyers and sellers largely reaching an impasse
- Following a swift overnight decline, Bitcoin has posted a strong rebound that has allowed it to surge back to $36,000
- Where it trends next will undoubtedly depend on whether or not buyers can flip $36,000 from resistance to support
- One analytics platform is noting that BTC has yet to test its crucial support level that sits just below $30,000
- They note that this is where there was serious whale buying activity in the past, and as such, these large buyers will likely defend this level
Bitcoin and the entire crypto market have been facing some mixed price action as of late, which has come about due to BTC’s lack of a clear trend.
The crypto has mainly faced some range-bound trading between $30,000 and $40,000, with buyers and sellers unable to take control of its price action.
Where it trends next will likely depend on whether or not bulls can target the $40,000 level and flip it into support.
One analytics platform is also noting that there is some serious support just below BTC’s current price, which happens to be where there was serious whale accumulation.
Bitcoin Rallies Past $26,000 as Bulls Try to Spark Reversal
At the time of writing, Bitcoin is trading up marginally at its current price of $36,000. This marks a notable rally from its recent lows of $34,000 set just a few hours ago.
The lower-$30,000 region has proven to be strong support, with each visit to this region allowing bulls to regain short-term control over its price action.
Any sustained decline beneath this support could reverse the cryptocurrency’s uptrend and lead to significantly deeper losses.
Whales Are Likely to Defend This One Key Support Level
While speaking about Bitcoin’s current support, one analytics firm explained that the price level just beneath $30,000 will likely continue acting as a strong base of support.
They note that the whale buying activity here is significant and that these large investors will likely continue defending it.
“This is how you trade whale bubbles for anyone wondering. Also, large inflows to whale wallets were happening at $29,314. They will be protecting their btc… This should be strong support for bitcoin in the short term, and hopefully long term.”
Image Courtesy of Whalemap.
The coming few days should shine some light on where Bitcoin will trend in the weeks ahead, as its ultimate reaction to its current range could set the tone for where it trends in the days and weeks ahead.
Featured image from Unsplash. Charts from TradingView.
Published at Sun, 17 Jan 2021 20:00:22 +0000 Data Suggests Whales are Keen on Protecting One Key Bitcoin Support Level