The presence of whale clusters suggests that this critical Bitcoin stage could spark an explosive rally.

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Bitcoin whale clusters indicate that the critical assistance and resistance thresholds in the short term are $57,046 and $60,045.

After more than a week of ranging, the price of Bitcoin (BTC) is attempting to smash through the $60,000 resistance mark.

According to whale clusters, the critical assistance and resistance levels in the short term are $57,046 and $60,045.

In other words, if Bitcoin remains above $57,046 and fails to challenge the $60,000 resistance, the likelihood of a successful breakout in the near future increases significantly.

Why whale clusters are important for Bitcoin

Whale clusters form when high-net-worth individuals purchase or sell Bitcoin at a certain price and then do not switch their shares.

As a result, a whale cluster support usually acts as a good macro support region for Bitcoin because whales prefer to buy more when BTC drop to the amount where they first purchased BTC.

A whale cluster resistance area, on the other hand, will certainly stand up as a sale area because whales are more likely to wait until their breakeven price to sell their positions.

According to researchers at Whalemap, the two key resistance levels for Bitcoin in the near term are $60,045 and $61,062. On March 31, the researchers noted:

“$BTC is back. Bouncing perfectly from whale supports so far. This is a good sign: in bear trends, whale resistances work better than supports and vice versa for bull trends. Whale supports are back to business now which means the trend has shifted. April should be quite fun.”

Bitcoin whale clusters. Source: Whalemap

Since then, Bitcoin’s price has been varying and consolidating between the $57,000 resistance level and the $57,000 support level.

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Based on this dynamic, the researchers speculated that this may be the calm before the hurricane, foreshadowing a surge in Bitcoin volatility, which is currently at its lowest since November 2020. They penned:

“The support resistance battle is intense. Levels from last week are working pretty well. Bitcoin is being capped by the $60,045 level pretty spot on. Is this the calm before the storm?

Traders’ sentiment about Bitcoin is mixed

The Bitcoin futures market is getting incredibly overheated, according to the pseudonymous trader known as “Byzantine General.”

The options market is booming, and the BTC futures funding rate is steadily above 0.12%.

The default futures financing rate for Bitcoin is 0.01 percent on average, indicating that the market is overheated by a factor of 12 or more.

The trader said:

“This looks pretty bad tbh. A good flush would be a blessing.”

Bitcoin price chart with futures funding rate and volume. Source: TradingView.com, Byzantine General

A trader known as “NekoZ” stated that the technical market structure of Bitcoin on the 4-hour chart indicates that BTC could consolidate longer, but is not bearish in the near term.

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The trader said:

“BTC – H4 I see no reason to be bearish on bitcoin 2 points I am adding to my long. As long as we keep showing higher lows, 0 reason to be worried.”

Traders widely agree that Bitcoin may experience a small pullback to reset from the overheating options market, but the macro technical framework remains bullish.

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