The latest data from the Bitcoin (BTC) whale clusters shows that four key short-term price levels could potentially act as resistance, namely $ 10,369, $ 10,570, $ 10,734, and $ 10,842.
The hourly card of unspent Bitcoin from whales. Source: Whale map
Whalemap, an on-chain analytics company that tracks Bitcoin whale activity, monitors areas where whales or high net worth individuals are accumulating or moving their stocks.
Green clusters indicate areas where whales last bought Bitcoin. Given the whales' tendency to wait for breakeven or sell profit, the clusters could act as areas of resistance.
Bitcoin faces strong resistance above $ 10,400 in the short term
There is an abundance of whales baffled or balanced by the time BTC hits $ 10,842, clusters show. It also means that large numbers of whales could potentially be sold in the near future.
The whale data also shows that some whales were likely sold in the $ 10,900 to $ 11,100 range. Whale “HODLer” activity indicates sell-offs in this resistance area, which is typically a bearish sign.
The Whalemap researchers said HODLer activity has declined in the past two days, showing an uncertainty in direction. They declared:
"HODLer Activity: Looks like they're pretty active at the 10.9-11,000 prices. Usually not a good sign. But we're pretty clear for today to date and yesterday's HODLer bubbles aren't showing much activity either. "
The time of BTC rejection of $ 11,100 corresponds to the clusters and where the whales were sold. Bitcoin also struggled to recover past $ 10,570, the second and largest short-term whale cluster.
Bitcoin has continued to see heavy rejections since its sharp drop from $ 11,179 to $ 10,296 on September 21. The $ 10,550, $ 10,450, and $ 10,370 levels have served as resistance for the past 48 hours.
The clusters and sell-off of whales above $ 11,000 suggest that BTC is likely to stagnate for the foreseeable future. The decreasing activity among whales also suggests that a sharp increase in volatility is not to be expected.
The HODLer volume of Bitcoin whales. Source: Whale map
Cryptocurrency traders apparently expect a longer period of consolidation at least in September. Given the intensity of the BTC decline over a short period of time, BTC would likely remain less volatile.
Traders give a similar feel to whale activity
Edward Morra, a bitcoin trader, said BTC price action will remain bearish until it closes above $ 11,000. As the clusters show, BTC faces numerous strong levels of resistance as it moves towards the $ 11,000 level.
Bitcoin's lackluster specs coincide with an unfavorable macro background. In the short term, the weakness of gold, the stock market, and the rally in the US dollar could add selling pressure on BTC. Morra said::
"Still bearish since September, bullish either above $ 11,000 a day or below untested demand."
Cantering Clark, a cryptocurrency technical analyst, said the $ 9,600-10,000 range could create a "bear trap." The $ 9,600 remains an unclosed CME gap, making it a likely short-term target. He said:
“Think in the coming weeks that we have a lot to do and to consolidate. I think this 9.6-10km area will set up a nice bear trap at some point. I'll try to swing SOS for it. "