According to Whalemap, in the short term, there are three main Bitcoin (BTC) whale groups that can serve as major technical levels. The $ 11,857, $ 12,256, and $ 12,868 levels are likely to be the main support and resistance areas.

In previous cycles, whale activity coincided with major price movements on key technical levels. For example, Cointelegraph reported that the whale sold for $ 12,000 after “HODLing” for years. Over the next few weeks, BTC dropped below $ 10,000.

Bitcoin whale groups. Source:
What are whale populations and why are they important?
Whale groups are formed when whales buy bitcoin and not transfer their bitcoin assets. This indicates that whales are accumulating BTC in their flocks.

The largest Bitcoin whale group was $ 11,857, while the previous ones ranged from $ 11,288 to $ 11,465. In the short term, this means that $ 11,857 is a great support area for whales.

Bitcoin must now stay above $ 11,857 or consolidate higher to see a wider rally. The ideal technical structure for the continuation of the rally would be stability at $ 11900.

After a big rally, some consolidation to neutralize the futures market could make the current trend healthier.

Since October 2, in just three weeks, Bitcoin has appreciated 24% against the US dollar. During the same period, gold rose slightly, by 0.2% as BTC outperformed the riskier and safer assets.

For most of the rally, the futures market showed negative or neutral funding rates. Thus, the march itself was not very crowded, and not facing a major setback.

However, corrective price action after a month of continued growth may stabilize the bullish move.

Why do whales collect BTC at these prices?
The whales may have bought between $ 11,000 and $ 12,000 due to the current rally.

Technically, Bitcoin exited from a three-year period and the daily chart confirmed its highest price since January 2018. Bitcoin’s daylight has never closed above $ 12,900 for nearly three years, according to Cointelegraph reports.

Aside from the technical reasons, this also strengthens Bitcoin’s perception as a potential competitor for gold alongside the underlying networks. Consequently, institutional demand for BTC has increased dramatically with the emergence of the CME Bitcoin futures market.

Meanwhile, researchers at Santiment, an online market analysis company, note that BTC appears to be decoupling from other markets. During its historical bullish cycles, when BTC showed independent price movements, this increased strength. They said:

“BTC $ has historically prospered when reliance on global markets, asset classes, and other industries is minimal, and trading can operate independently without being distracted by non-cryptocurrency events such as deviations.”
The combination of BTC resilience above $ 11,900, the group of important whales, and several favorable technical factors can help overcome several short-term bearish signals in order to sustain the day’s rally.

Source: CoinTelegraph