Short-term clusters cost $ 10,570, according to Whalemap, a network analyst firm that specializes in bitcoin (BTC) whale activity.
Whale groups are formed when whales collect bitcoins and not move bitcoins. Areas with a lot of unused BTC become an area of interest, usually a resistance level. Whalemap analysts explain:
Bubbles show an accumulation of unused bitcoins. The bigger the bubble, the more unused Bitcoins. Note. The word “not used” means that these bitcoins were not transferred as they were “sent” to the whale wallet. ”
Often whales or people with large amounts of BTC sell either at breakeven or at a profit, depending on the market direction. If whales find the current trend down, the $ 10570 level could be a breakout area for whales.
The two largest groups of whales provide technical information
The two largest herds of whales in the short term are estimated at $ 10,570 and $ 11,800. Unsurprisingly, these two levels are also important resistance areas for BTC in the short term.
Based on recovering more than $ 10,000 in bitcoin, some traders expect BTC to test the resistance range from $ 11,000 to $ 11,300.
According to cryptocurrency trader Edward Moore, Coinbase’s order book consistently showed decent consumer demand in the $ 10,000 range. He said on September 11:
“If Bitcoin falls, Coinbase has several orders of magnitude lower. Coinbase’s price from 10,200 to 10,000, is currently trading ~ 2,500 BTC.”
The strength of the $ 10,000 support level could allow BTC to retest and possibly surpass $ 10,570. For now, many traders seem cautiously optimistic, at least until the mid-$ 10,000.
Most of the short term bullish and bearish releases are also located in the resistance range between $ 10570 and $ 11000. Avoiding the assortment increases the possibility of deficiencies in the near future.
Settlements on a chain that swing gently in a descending manner
Currently, several accounts in the series support the short-term bearish outlook for Bitcoin. For example, Glassnode data shows that BTC mining volumes on exchanges have grown to levels not seen since 2017. The researchers stated:
Currently, nearly 10% of all #Bitcoin mining fees are spent on transactions that contribute BTC dollars to central exchanges. This is a doubled increase since the beginning of the year, and we have not witnessed such a level since the end of 2017. ”
However, the growth in mining and the record high hash rate on the Bitcoin blockchain network indicate an overall increase in network activity. However, if miners sell the commission, that could put additional pressure on selling the Bitcoin / USD pair.
Historically, many analysts have used a variety of network activity metrics to measure Bitcoin in the short to medium term.
For example, Brian Kelly of CNBC used Unique Bitcoin Targeting Activity to assess Bitcoin’s price movements.