According to operational data from analysts Whalemap, $ 13,000 has become a support level for Bitcoin (BTC). Whale groups indicate that whales – or large BTC whales – are constantly building up.
Whale groups form when a large amount of BTC is transferred to a new address and BTC is not used. This indicates that whales have either bought or transferred BTC to other whales, and is an indication of consumer demand.
A large group of whales has emerged at the $ 13,000 level, which could be a major level of support.
Why the $ 13,000 Support would be ideal for the Bitcoin Rally
Bitcoin’s steady rise differs from past trends in that it is considered more resilient.
Bitcoin began to gain momentum as of September 23rd. Since then, it has repeated the rally and then the consolidation pattern and established clear support levels.
On September 23, BTC first rose from $ 10,200 to $ 10,600 and then consolidated. Growth resumed on October 8 to $ 11,700, then stabilized at $ 11,400 for several days. Then on October 19, it began to grow again.
Due to the healthy growth of Bitcoin, whales are pooling bitcoins in key domains. The $ 13,000 whale group might indicate that high net worth investors aren’t expecting a massive withdrawal in the near future.
Speaking to Cointelegraph, Whalemap Market Analyst Andy Bogotsky explained:
“We now have a whale group worth $ 13,000 and many unused bitcoins belonging to the whale books at this level. Since Bitcoin’s price is above the $ 13,000 level, it should act as a support. Looking at the volume of HODLs in the short time we spent at $ 13,000, we can see that a lot of BTC was moved during that time (the volume of HODLs transactions at 01:00 UTC on October 23 was over $ 1 billion).
The $ 1.1 billion Bitcoin deal was later recognized on October 23 as a transaction by Xapo. Since Xapo is a service provider for cryptocurrencies, there is a strong possibility that it is an OTC transfer.
The risk of massive earnings correction is low
Meanwhile, another important calculation, SOPR, shows whether investors in the cryptocurrency market are collecting profits on their positions.
Bogotsky explained that while SOPR was regularly volatile, it did not increase significantly as BTC crossed $ 13,800.
This data talks about two main things. First, investors have made profits on a regular basis over the past month, reducing the likelihood of a large return. Second, even with years of resistance like $ 13,875, whales don’t make much money. He said:
The BTC sources used during this time are shown in the Bitcoins chart used (red bubbles). SOPR at 01:00 UTC on October 23 is not too high, which is very surprising. As for the macro levels, the volume profile illustrates it well, as the levels shown also correspond to what the technical trader also considers S / R to be valid.