Bitcoin fell below $ 54,000 on April 20, while whale groups indicate that the main areas where BTC may return in the short term are $ 56,274 and $ 55,172.
The cryptocurrency market began to decline again after Monday’s first rally. Bitcoin fell from $ 57,400 to $ 54,000, losing Whale Group’s support level of $ 55,172.
Bitcoin whale groups. Source: Whalemap
In the short term, it is important that Bitcoin rally above $ 55,172 and recover as a support level. Otherwise, he risks testing the total support range of $ 51,000.
Why are whale support areas important?
Whale groups are formed when whales or wealthy investors buy or sell large amounts of bitcoins.
Since whales tend to buy bitcoin in a region they previously bought to defend their position, whale populations are often a positive sign of strong support areas.
Analysts at Whalemap, a data analytics platform that tracks whale activity, note that whales sell for as much as $ 58,000.
Analysts believe that in the short term, with $ 58,000 as an area of interest, $ 56,274 and $ 55,172 are important short-term levels to watch.
Most of Wales’ portfolio was around $ 58,000 dollars. This should be a battlefield for Bitcoin. $ 56,274 and $ 55,172 are currently important steps that must be observed to continue the trend.
If Bitcoin does not demand $ 56,274 and continues to decline, it means that the whales are not increasing their existing positions.
In that case, the total support level of $ 51,000 could be in danger of reconsideration, Cointelegraph previously reported.
The $ 51,000 level is critical because if a breakout occurs, it will crash the bottom and top structure of Bitcoin, potentially putting the entire Bitcoin bull market in jeopardy.
Whalemap added: “These are important levels to look for.”
There has been a build-up at the current level, but if 55K does not hold, we can easily fall to 47438, where there is a strong support level.
Both whales and testers are responsible for sales.
On April 18, the price of bitcoin fell from $ 60,000 to almost $ 50,000 at the lowest point of the day.
According to analysts at Whalemap, not only whales and wealthy investors have been on sale for a long time.
“Since Whalemap allows us to trace the source of the HODLer coins, we can confirm that the coins sold yesterday were originally purchased after being cut in two in 2020. Checking the whale block chart reveals that the HODLer coins that moved yesterday are in fact were not only HODLERS but also whales. Because the bubbles are in the same places. ”
Based on this trend, it is difficult to predict whether Bitcoin will see a significant rally in the near future and resume its bullish trend again.
BTC / USD price chart for 1 day (Bitstamp) after large levels. Source: TraderXO
Several well-known traders were of the same opinion. A trader named “Trader XO” said that while this is not a bearish feeling, he sees the possibility of a deeper bounce.
“BTC is currently out of position. I would not give up a deeper bounce around the 0.5-0.705 Fibonacci levels. Not bearish – just need a better buying opportunity. “