New data from Whalemap shows that the bitcoin price needs to stabilize above $ 14,914 in order to maintain a bullish pace.
Groups of whales, like the bubbles shown in the chart below, form when wealthy investors buy bitcoin and don’t move it. This indicates that the whales have collected bitcoins at this level, which suggests that it is likely to remain a remediation support zone.
So, in the short term, it is important that Bitcoin stays above $ 14,914 for a long time. This will express consolidation with multi-year resistance at $ 16,000 and stability above major support.
What makes the price of BTC above $ 14,914?
Bitcoin has experienced an extraordinary price movement over the past week and has been extremely volatile over a wide range.
From November 6 to November 9, BTC tested the $ 16,000 level twice, dropping to $ 14,350. This short-term volatility is likely related to a number of macroeconomic developments, including the mixed US election results.
A number of significant risks have existed in the market since early November. Bitcoin has benefited greatly from the risk of elections when investors sought safe haven assets. After that, the Pfizer vaccine hack became an unexpected variable, which led to a sharp drop in Bitcoin and gold.
Despite this uncertainty, Bitcoin remained comfortably above $ 13,600, the level set by Whalemap analysts. They wrote:
“New levels were formed over the weekend! If we start to change, this should be a good guide to what the levels should be. The price must be above $ 13,600 to continue the trend. ”
In the short term, the $ 13,600 to $ 14,914 range remains the most important for Bitcoin’s ongoing rally. So far, Bitcoin has been relatively strong considering that miners have sold it.
As Cointelegraph previously reported, CryptoQuant CEO Ki Yong Jo said in an interview that miners are selling bitcoins. Based on the resilience of BTC, it is likely that the demand for new buyers will match the selling pressure from miners.
Investors at a crossroads
Bitcoin is experiencing tremendous volatility due to market uncertainty. Several indicators along the chain indicate that Bitcoin is entering sell territory where investors can profit. Philip Swift, cryptocurrency analyst, wrote:
“Unrealized Relative Profit / Loss Index: We are now entering the ‘greedy’ zone in this latest batch of bitcoins. It looks bad, but in fact we can spend most of the bullish cycle in this area. We are still early and we have a lot of collection room. “.
But other basic calculations show that Bitcoin is still in the early stages of a rally. For example, HODLing activity continues to grow, and research shows that reasonable money has provided most of the growth.
The lack of clarity in the direction of bitcoin is demonstrated by unusual price behavior and mixed messages of data points along the chain. However, as long as the leading cryptocurrency remains above $ 14,914, at least in the short term, the outlook remains cautiously optimistic.