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Whales Activities Could Have Caused Bitcoin’s Declines

Bitcoin’s price has been unstable for the past few days as it touched as low as $52,000 earlier this week. The asset has regained some of its lost value, but it’s still far from its ATH, which is around $65,000. The asset is currently trading around the $55,000 mark, which shows that the crypto could be on the verge of welcoming new gains.

The continuous price decline came as a shock to many people, but new whale cluster analysis reveals that long-term holders and market whales could have caused the latest selling pressure. The asset had stayed around $54,000 for a while but has recorded new gains, which has decreased the crypto’s price fluctuations.

Bitcoin’s support holds at $56,272

The whale cluster shows that Bitcoin could assure more short-term gains if it stays within the $56,272 and $55,172 marks. The digital asset space has seen new declines after suffering some price drops last week. The market could add short-term gains before the market bears regained dominance and continued to rapid falls.

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Bitcoin could be described as one of the biggest losers as it lost the $55,172 support at one point, and it fell as low as $54,000. Interestingly, the crypto moved up the charts and stabilized at the $55,800 mark but is presently around $55,072.

Bitcoin’s movement above the $55,172 range could have been the cause of the new bullishness, and experts believe the crypto would retake its lost value. This movement helped it regain new support above the mark. If the crypto could not move above the $55,000 range, it could be vulnerable to more price drops and touch the $51,000 mark.

The popular whale clusters happen when institutional investors or whales buy vast amounts of crypto or even sell a large amount of the digital asset. It’s safe to note that the whale clusters have positive effects most times as they indicate Bitcoin or another asset in solid support levels. These support levels would prevent the crypto from having significant declines.

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Whales volumes persist around the $58,000 mark

One of the sector’s well-known whale analytics firms, Whalemap, revealed a substantial amount of whales around the $58,000 mark. The firm shares mainly information linked to market whales, which gives people insight into the current market situation.

The firm’s analysts revealed that with $58,000’s outlook, $56,271 and $55,172 are essential to price marks that could assure more gains for Bitcoin. The experts said that the heavy whale volumes are $58,000 could be the asset’s next resistance point, but the $56,272 and $55,172 would assure that the asset keeps accumulating new gains.

This means that If Bitcoin fails to retake the $56,000 level and persistently falls, it would mean that market whales are not imposing new buy pressure. The decline might continue until the asset hits the $51,000 support, and then it could ignite an uptrend.

Still, the $51,000 point could pose new problems if the crypto moves below that point, and that would cause more price drops. Analysis shows that if the $51,000 support is broken, Bitcoin might not see a rally to take the price to a higher level.

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Adebayo Owotunse (Nigeria)

Adebayo Owotunse is a versatile writer who has written hundreds of crypto articles for dozens of agencies across the years. He is now also the newest addition to the Tokenhell writers team.

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