After the unsuccessful reach of the $14,000 level range in the last month, and the current price drops down to $10,500, bitcoin whale clusters chase another major resistance level between $10,570 and $11,288, raising the chances of a major sell-off.
According to the Whalemap chart, which analyzes the on-chain Bitcoin (BTC) whale activity, short-term clusters are now present at $10,570.
Whale clusters are shown at $10,570 and $11,288 for Bitcoin for the last. Source: Whalemap
Since we know that “whale clusters” form when whales accumulate Bitcoin and do not move the BTC waiting for a higher range level. The big bubbles are the areas with large amounts of unspent BTC. They instantly become an area of interest, known as the resistance level. Analysts at Whalemap explain that “Unspent means these bitcoins have not been moved since they were ‘inflowed’ to a whale wallet.”
Whales – the individuals holding large amounts of BTC - like to sell either at breakeven or at profit, depending on the market trend. Also, when whales consider the current trend to be bearish, the $10,570 level, in today’s situation, could serve as an area where whales breakeven.
The bearish and profit levels are the whale’s clusters. In the short term, whale clusters these days are found at $10,570 and $11,800. Expectedly, these two levels are also key resistance areas for BTC in the immediate term. Some traders foresee BTC retesting the $11,000-$11,300 resistance range, after analyzing the solid Bitcoin’s recovery of Bitcoin above $10,000. The strength of the $10,000 support level allows BTC to retest $10,570. After the recent price drops many traders appear to be cautiously optimistic, at least until the mid-$10,000. Most short-term bearish cases center around the $10,570 to $11,000 resistance range.
Glassnode, one of the many on-chain metrics are supporting the near-term bearish case for Bitcoin. Their data show almost 10 % of all Bitcoin miner fees spent in the transactions and a twice increased level of BTC miner fee deposits to exchanges unseen since 2017. These two positive events indicate an overall rise in network activity. Miners selling their fees could impose additional selling pressure on the BTC/USD pair.
Bitcoin fees are being sold on exchanges. Source: Glassnode
Over the years, metrics were used to analyze, measure, and predict the next trends of Bitcoin. Whale clusters tend to set themselves trends such as the resistance levels.