Since reaching $ 19,484, the price of bitcoin has struggled to regain its level of $ 17,000 to $ 18,000. As the price continues to fall, traders are turning to key baseline support levels to determine where traders will buy if the price of Bitcoin (BTC) continues to fall.
Immediate support levels based on whale clusters are $ 16,694, $ 16,411 and $ 16,064. Under the support of $ 16,000, $ 15,355, $ 14,914 and $ 13,740 can serve as macro support areas.
Whale clusters are formed when whales accumulate BTC and do not move their recently acquired funds. The clusters also indicate where the whales were last purchased, which means potential support areas.
$ 16,411 is the short-term level to watch for bitcoin
The price of bitcoin shows a weakening momentum in the last 24 hours. After such a large adjustment, some consolidation is expected, as the price seeks stability.
One positive trend is that buyers are aggressively defending the $ 16,411 maintenance area, which is marked by whale clusters. This shows that there is enough buyer demand in the market to prevent a larger retreat, at least in the short term.
On November 27, Bitcoin tested twice the support range of $ 16,200 to $ 16,400 in 22 hours. Both re-tests were met with a decent response from buyers, as BTC jumped above $ 16,800 in both cases.
For most of the day, bitcoin remained above $ 17,000 and reached $ 17,400, indicating that BTC is regaining momentum.
However, some retailers do not rule out the possibility of BTC falling in the lower areas of macro support. A trader under a pseudonym known as “Wolf” said the weekly ranking showed signs of overstretching. As such, he said the $ 13,000 region could be tested. The trader explained:
“Unlike $ ETH, $ BTC looks much longer than the weekly 21EMA, still far from interesting maintenance. My ideal entry would be the outlined basic support @ 13k. We can currently maintain 16213 weekly support and then head down for ABC correction. “
Another retailer with a nickname, known as “Crypto Capo”, offers a similar trend. He said he saw a scenario in which BTC rose to $ 18,000 and then fell to the $ 13,000 region.
$ BTC USD 6 hours
Interesting price action means more technical analysis. I expect the trend to cool down here. $ 17,214 is the key level to watch, daily closing below here and I expect to move to test the 0.382 level.
Love these conditions. pic.twitter.com/nGobpRAXiN
– Koroush AK (oroKoroushAK) 26 November 2020
Traders expect Bitcoin consolidation to continue for weeks
Although there are bearish short-term forecasts from longtime bitcoin investors, some technical analysts say consolidation may take some time.
Michael van de Pope, a full-time trader on the Amsterdam Stock Exchange, said the market was facing a healthy retreat. After the adjustment, Pope said the consolidation could take several weeks. He said:
“Relax and reduce the scale, the market makes a healthy adjustment and gives everyone a great opportunity to invest. Don’t be impatient, the market will make a natural bottom to confirm that it is inside. It only takes weeks. “
In the short term, the immediate area of interest for buyers remains the three levels of clusters of 16,694, 16,411 and 16,064 dollars. If the BTC falls convincingly below these levels, the likelihood of a deeper correction could jump significantly.
After a sharp drop in the price of bitcoins, whale clusters are showing several areas as key support levels. These levels can allow the BTC to stabilize and regain momentum in the short term.