According to Whalemap, an on-chain analysis firm that focuses on bitcoin (BTC) whale activity, short-term clusters exist at $ 10,570.
Whale clusters are shown for Bitcoin at $ 10,570 and $ 11,288. Source: Whalemap
Whale clusters are formed when whales accumulate bitcoins and do not transfer to BTC. Areas where a large amount of BTC is present typically become a resistance level. Whalemap analyst explain:
“Bubbles show the locations where unexpected bitcoins were deposited. The larger the bubble, the more unexpected bitcoins are located there. Ps Unspent means that these bitcoins have not been transferred because they were ‘inflated’ in the whale wallet. “
Whales, or individuals possessing large amounts of BTC, prefer to either sell or sell for profit, depending on the market trend. If the current trend of whales is bearish, the $ 10,570 level could serve as an area where whales have ceased to exist.
The two largest whale clusters are in line with the technology
In the short term the two largest whale groups are found at $ 10,570 and $ 11,800. Unexpectedly, two levels are significant resistance zones for BTC in the immediate term.
Based on the recovery of bitcoins above $ 10,000, some traders abandoned BTC for the $ 11,000- $ 11,300 resistance range.
According to cryptocurrency trader Edward Morra, Coinbase’s order book has consistently shown good buy demand in the $ 10,000 sector. She said On 11 September:
“In the case of bitcoin dips, there are some rough orders under the coinbase. Coinbase added bids from 10200 to 10000, now the bids have ~ 2500 BTC. “
The strength of the support level of $ 10,000 could allow BTC to reclaim $ 10,570, and potentially surpass it. For now, many traders appear to be cautiously optimistic, at least by the middle $ 10,000.
Most short-term bullish and bearish cases also range between the $ 10,570 to $ 11,000 resistance range. Rejection from the range increases the probability of downside in the near future.
On-chain metrics dominated cautiously slowdown
For now, a number of on-chain metrics are supporting the near-recession case for bitcoin. For example, data from Glasnod show that the level of exchanges from BTC Minor Fee Deposits has increased to unseen levels since 2017. Researchers said:
“Currently, about 10% of all #Bitcoin miner fees are spent on transactions that submit $ BTC to centralized exchanges. This is a 2x increase from the beginning of the year, and levels we haven’t seen since the end of 2017. “
However, the increase in Minor fees and the record-high hash rate of the Bitcoin blockchain network indicate an overall increase in network activity. But if miners sell the fees, it could put additional sales pressure on the BTC / USD pair.
Bitcoin fees are being sold on exchanges. Source: Glassnode
Historically, many analysts have used various network activity matrices to measure bitcoin’s medium-term trends.
As an example, Brian Kelly of CNBC has consistently used bitcoin’s unique address activity to assess the BTC price trend.