Bitcoin Whale Groups (BTC) point to three critical price levels to maintain a bullish market structure in the short term.
Whale groups form when large investors buy bitcoin and do not move it, making the transaction unused. These groups usually indicate how critical the support levels are, and the logic is that BTC must maintain this level in order to see a long-term meeting.
According to Whalemap, the three major support levels that mark the whales are $ 10,407, $ 10,570 and $ 10,667.
Movement of whales could signal the start of an uptrend for bitcoin
Whales or individual investors holding large amounts of bitcoin are usually looking for significant liquidity to buy or sell. This is because they process large buy or sell orders and satisfy this need by targeting very liquid price points.
Whale building often occurs when weak hands give up and retailing at the peak of fear in the markets usually coincides with buying whales as large volumes of sales need to be placed.
Over the past five days, there have been many contingencies and events that could drive retail investors to sell.
On October 1, the US Commodity Futures and Trade Commission (CFTC) accused BitMEX of violating banking secrecy. Almost immediately after that, BTC fell 4.1%.
On October 2, US President Donald Trump tested positive for COVID-19. The unexpected cut in presidential COVID-19 temporarily shook financial markets and increased selling pressure on Bitcoin.
These two events heightened fears in the cryptocurrency market: Bitcoin prices fell from $ 10,900 to $ 10,500.
Over the next few days, the price returned to $ 10,670, and this newly discovered flexibility is consistent with the groups of whales formed on October 2.
Two technical factors can increase the speed of Bitcoin
Aside from whale activity, there are two technical incentives that can heighten the experience of BTC.
First, the funding price of bitcoin futures on major exchanges is either negative or neutral. When the funding ratio is low, it means that most futures exchange traders are betting on bitcoins.
A long period of negative prices increases the likelihood of short-term stress, which could lead to a rise in BTC. A merchant under a pseudonym known as the “Byzantine General” said:
Monday is approaching and funding will be more negative. It is especially good where most fish are found. ”
Additionally, since Bitcoin was introduced by the CFTC, market data provider Glassnode has reported that investors have withdrawn 45,000 BTC from BitMEX. The holdings have mostly moved to Gemini and Binance, two of the best cryptocurrency exchanges.
Several industry experts have predicted action against BitMEX, and as a result, the influx of Bitcoin is not particularly surprising.
It can be argued that the outflow of funds from BitMEX to two more reliable exchanges may be in favor of the general market sentiment. Moreover, Gemini is considered one of the strongest cryptocurrency exchanges in terms of compliance.