According to the latest whale clusters data for Bitcoin, there are four short-term key price levels that could act as resistances, which are $10,369, 10,570, 10,734, and $10,842, respectively. An on-chain analysis firm that specializes in tracking Bitcoin whale activity, Whalemap keeps an eye on areas where whales, who are high-net-worth individuals, move or accumulate their holdings. Green clusters are used for indicating areas when Bitcoin was last purchased by whales. The clusters could work as resistance areas, given the tendency of whales to wait until profit or break-even for selling. As per the clusters, there is a large number of whales who are at breakeven or a loss until Bitcoin hits the price of $10,842.
This also indicates that there is a potentially high number of whales that may sell Bitcoin in the near term. The whale data has also highlighted that some whales probably sold Bitcoin when it was in the $10,900 and $11,100 range. Sell-offs at that particular resistance range could be seen in the ‘HODLer’ activity of whales and this is typically a bearish indicator. According to researchers at Whalemap, there has been a decline in HODLer activity in the last two days, which is an indicator of uncertainty in direction.
The clusters match the timing of BTC’s rejection from the value of $11,100 and where whales started selling. Bitcoin has also been struggling to go beyond $10,570, which is the second and also the largest whale cluster that can be seen in the short-term. Since it fell steeply from $11,179 to $10,296 on 21st September, Bitcoin has constantly seen steep rejections. In the last 48 hours, three different prices have served as the level of resistance, which are $10,550, $10,450, and $10,370, respectively. The whale sell-off above $11,000 and the clusters indicate that Bitcoin is probably going to stagnate in the foreseeable future.
Moreover, the market should not expect a huge spike in volatility because of the decreasing HODLing activity amongst the whales. It seems that cryptocurrency traders are expecting an extended period of consolidation, at least in the month of September. BTC is expected to remain less volatile, considering the intensity with which it has dropped in a short period. According to Bitcoin traders, the cryptocurrency’s price trend until it will close above $11,000. But, the clusters indicate that BTC will be facing several resistance levels in order to reach a value of $11,000.
An unfavorable macro backdrop coincides with these lackluster numbers of Bitcoin. There could be increased selling pressure on the BTC in the near-term because of the weakness of gold, the rally of the U.S. dollar, and the stock market. Some analysts are of the opinion that a ‘bear trap’ could be formed by $9,600 – $10,000 range. Since the former stills as an unclosed CME gap, it could be the short-term target. In future, there would be lots of consolidating and ranging taking place. The bear trap is highly likely and it could be very unfavorable for the crypto.