Bitcoin whale colonies set the main support level for the rally to progress.

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Bitcoin whale clusters display $23,409 as a main support field, which means that the ongoing rally has a strong floor.

Bitcoin (BTC) whale clusters indicate that the $23,409 level has become a focal point for large traders. This suggests that the latest bull run is buoyed by whales that manage to accumulate more than $23,000.

Whale clusters form when whales buy Bitcoin and do not transfer their BTC holdings from the purchase price. Clusters are useful in evaluating the level of support for Bitcoin, particularly when the market moves quickly.

 

Bitcoin whale clusters. Source: Whalemap.io

“Should not be going lower than $23,409”

According to analysts at Whalemap, a data analytics firm that tracks Bitcoin whale activity, BTC has formed a strong floor in the $23,000 to $23,500 range. They said:

“Surprisingly large amounts of losses were flowing on-chain at 19k prices. When this happens in bullish conditions BTC gives us nice rallies (10k–>20k last time). We have multiple strong supports at recent prices as well… Should not be going lower than $23,409.”

It is necessary for Bitcoin to create solid support areas during bullfighting due to the risk of sudden corrections. If whale clusters are present at high price levels, such as $23,409, then whales are likely to bid marginally higher and retain Bitcoin’s momentum.

Peter Brandt, a long-time trader, pinpointed the parabolic line of Bitcoin dating back to October as a key area to watch.

Daily BTC/USD price chart with trendlines. Source: TradingView.com, Peter Brandt

The line indicates $24,000 as the critical support area, which would mean BTC needs to stay above it to prevent a large drop. Brandt wrote:

“Bitcoin $BTC is advancing in parabolic move from Sep ’20 low. I expect this curve to be violated at some point, but not to produce 80% decline. Green curve is a larger parabolic advance from Dec 2018 & Mar 2020 lows. This is the driver of bull market.”

In the near term, the whale clusters and the parabolic trendline show that $23,409 and $24,000 are the two key levels Bitcoin must hold.

Below $24,000, the chances of an accelerated correction increase, which could worsen if whale cluster support areas are breached.

Where would BTC top out at?

Traders commonly agree that Bitcoin will grow to two levels: $30,000 and $36,000. The latter has become a common near-term forecast because the options market suggests a high likelihood of $36,000 being reached in the coming months. The former, of course, is a crucial psychological level.

A pseudonymous trader known as “Byzantine General” said that he foresees Bitcoin topping out at $30,000. He explained that $30,000 is the “golden ratio extension” level and also has sell orders on Coinbase and Bitfinex. He said:

“I think this rally tops out mid-term around 30k. It’s the golden ratio extension. Also happens to be where CB & Finex got fat asks laying around.”

On Dec. 27, Bitcoin quickly saw large volatility, eventually falling 6.5 per cent within a few hours after the price had risen to $28,200 across major exchanges. Given that resilience areas with heavy sales order scanning are subject to significant pullbacks, the $30,000 area could present a big short-term roadblock to Bitcoin.

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