On April 20 Bitcoin Price fell below $54000, with whale clusters indicating that the main areas for the price to redeem in the short term are $56,274 and $55,172.
The prices dropped from $57,400 to $54,000, in the process lost the $55,172 whale cluster support level. Bitcoin in the days to come has to surge higher than $55,172 making it a support level.
Huge investors or whales trade a massive amount of Bitcoin to form Whale Clusters. These Whales tend to purchase at a set level. Hence, they make for a positive indicator of strong support levels.
The Whale activity tracker, data analysis tool Whalemap, has noticed that at $58000, a lot of whale activity happens.
What happened yesterday from an on-chain perspective (1/7):
Whale wallet inflow at $51,325 was responsible for the bottom in price (spot Coinbase).
— whalemap (@whale_map) April 19, 2021
The Analysts at Whalemap said,
“A Lot Of Whale Wallet Volume Was Happening At Around $58K. This Should Be An Area Of Struggle For Bitcoin. $56,274 And $55,172 Are Currently Important Supports That Have To Be Respected For Uptrend’s Continuation”.
If the price doesn’t recover $56,274 and continues to fall, this will hint that whales are not adding to their current positions. If this happens the $51,000 macro support level
The $51,000 level is crucial because if it falls below it, the higher low structure of Bitcoin will collapse, taking the entire Bitcoin bull market in jeopardy.
Whales and Long term Hodler’s sold Bitcoin
Two days ago, the price of Bitcoin plummeted from $60,000 to nearly $50,000 at its lowest point of the day. The report by Whalemap analysts suggested Long-term holders were not the only ones who sold, Whales and high-net-worth investors were also among those who sold.
“Since Whalemap Allows To Track Where The HODLer Coins Are Coming From We Can Check That The Coins Transacted Yesterday Were Originally Purchased After The Halving In 2020. Checking The Whale Outflow Map Shows That The HODLer Coins Moving Yesterday Were Actually Not Just HODLers But Also Whales Since The Bubbles Are In The Same Locations.”
Based on this pattern, it’s difficult to predict whether Bitcoin will see a significant rally in the near future resuming its upward trend.