As the data shows, it’s all about buying and selling bitcoin high volume zones on short timeframes.
Bitcoin (BTC) attempted to break the August resistance on September 10 as whale buying levels dictated BTC price action.
BTC/USD 1-day candlestick chart (Bitstamp). Source: Trading View
Whales Provide Short-Term Price Ceiling
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD hit a new multi-week high of $21,671 on Bitstamp.
The pair benefited from a short squeeze that began early September 9 and rose by about 10% after hitting its lowest levels since the end of June.
Analyzing the events, network monitoring resource Whalemap found that whale buy-in clusters actually allowed Bitcoin to fall.
$19,000 was previously an area of interest for high volume buyers and thus remained untouched during visits to two-month lows.
Two other key whale support zones are at $16,000 and $13,000, Cointelegraph reports.
“Whale’s support at 19,000 worked out almost perfectly,” the Whalemap team commented:
“According to Valen, $21,543 is now the next resistance.”
The attached chart showed the value of the middle $21,000 range that BTC/USD traded during the day. In addition to attracting whales, the zone acted as support in mid-August before turning into resistance.
Annotated graph of receipts in a large bitcoin wallet. Source: Whalemap/Twitter
“Bitcoin is still leaning on resistance and likely consolidating here,” Mikael van de Poppe, founder and CEO of trading company Eight, told his Twitter followers that day:
“I would like to see a break of the high and then consolidation. What happens between them? Most likely, we will see a strong rise in altcoins.”
Trader Phoenix, meanwhile, called for a more substantial consolidation followed by a return to $23,000.
Ethereum expects to reach $1900
Of additional interest to traders was Ethereum (ETH), which reached its highest level since August 19, the day before the correction.
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$1,745 can still be beaten, claims Il Capo’s popular Twitter account, before staging a drop.
“Go straight for $1800-1900 resistance,” he predicts in a recent update:
“I expect a bearish continuation once this level is reached. It can be no later than the date of the merger.”
ETH/USD 1-day candlestick chart (Binance). Source: Trading View
The merger, due to take place on September 15, has already attracted a lot of attention as a potential source of volatility for both ETH/USD and other currencies.
Refunds to holders from the defunct Mt.Gox exchange are tentatively scheduled to start on the same day, and both events will occur two days after the latest US consumer price index (CPI) inflation data.
The views and opinions expressed here are solely those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and trading move involves risk, so you should do your own research when making a decision.
