According to Whalemap, a chain analysis company that focuses on Bitcoin’s (BTC) whaling business, short-term clusters are worth $ 10,570.
Whale clusters are shown at $ 10,570 and $ 11,288 for bitcoin. Source: Whalemap
Whale clusters are formed when whales accumulate bitcoin and do not move BTC. Areas that have large amounts of unspent BTC become an area of interest, usually a level of resistance. Whalemap analysts explain:
“The bubbles show places where unspent bitcoins have been accumulated. The bigger the bubble, the more unspent bitcoins are there. Ps Unspent means that these bitcoins were not moved because they were “sharpened”; to a whale wallet. “
Whales or individuals with large quantities of BTC like to sell either at break-even or at a profit, depending on market trends. If whales consider the current trend to be bearish, the $ 10,570 level could serve as an area where whales are in an unconditional state.
The two largest whale clusters are ranked technically
The two largest whale clusters in the short term are at $ 10,570 and $ 11,800. Not surprisingly, both levels are also key areas of resistance for BTC in the near term.
Based on the recovery of bitcoin above $ 10,000, some traders predict that BTC will re-test the resistance range of $ 11,000 to $ 11,300.
According to cryptocurrency trader Edward Mora, Coinbase’s order book consistently shows a decent demand for purchases in the $ 10,000 zone. He said on September 11:
“In case the bitcoin drops, coinbase has a few thick orders below. Coinbase added offers, from 10,200 to 10,000, now has about 2,500 BTC. “
The strength of the $ 10,000 support level could allow BTC to test $ 10,570 again and potentially surpass it. For now, many retailers seem cautiously optimistic, at least until the mid-$ 10,000.
Most short-term bullish and bear cases also center around the resistance range of $ 10,570 to $ 11,000. Rejection from the range increases the likelihood of a decrease in the near future.
The indicators of the chain, which swing cautiously, bear
Currently, several chain indicators support the short-term bear case for bitcoin. Glassnode data, for example, shows that deposits of BTC miner fees on exchanges have risen to levels not seen since 2017. Researchers say:
“Currently, almost 10% of all #Bitcoin miner fees are spent on transactions that deposit $ BTC on centralized exchanges. That’s a 2-fold increase since the beginning of the year and levels we haven’t seen since the end of 2017. “
The increase in fees for miners and the record high hashing speed of the Bitcoin blockchain network show an overall increase in network activity. But if the miners sell the fees, this may put additional pressure on the sale of the BTC / USD pair.
Bitcoin fees are sold on exchanges. Source: Glassnode
Historically, many analysts have used different network activity metrics to measure the short- and medium-term trend of bitcoin.
As an example, CNBC’s Brian Kelly constantly uses bitcoin’s unique addressing activity to assess BTC’s price trend.