Whale clusters point to massive rally in bitcoin price

Bitcoin (BTC) price has been trying to break the $ 60,000 resistance level for more than a week.

Whaling moves show that $ 57,046 and $ 60,045 are key support and resistance areas in the short term.

In other words, if Bitcoin stays above $ 57,046 in the near future and continues to test the $ 60,000 resistance, the likelihood of a strong breakout will increase significantly.

Why are whale clusters important to Bitcoin?

Whale clusters are formed when those with large investments buy and sell Bitcoin at a certain price and then do not move those assets.

This is why whale cluster support often acts as a strong macro support area for Bitcoin, as whales tend to buy more when they drop to the level where they took BTC.

On the other hand, resistance areas of whale clusters will also work as sales areas. Because whales are more likely to wait for breakeven price to cash their positions.

According to Whalemap researchers, the two key resistance levels for Bitcoin in the near term are at $ 60,045 and $ 61,062. In a statement dated March 31, the researchers noted the following:

“BTC is back. It has bounced off perfectly from whale supports so far. This is a good sign. Whale resistances work better than supports in bearish trends, and vice versa in bull trends. Whale supports are now back on the agenda, which means the trend is changing. April is quite It will be fun. “

Bitcoin whale clusters. Source: Whalemap

Since then, Bitcoin’s price has been traversing between the resistance level and the $ 57,000 support.

Based on this trend, the researchers comment on silence before the storm and expect an increase in Bitcoin price volatility, which has been at its lowest since November 2020.

“The battle of support and resistance is heating up. Last week’s levels are working very well. Bitcoin is moving towards the target of $ 60,045. Is that the silence before the storm?”

Bitcoin opinions from traders are mixed

Known as “Byzantine General”, the trader said that the Bitcoin futures market is starting to get extremely hot.

As the derivatives market is rising, the BTC futures funding rate is consistently moving above 0.12 percent.

On average, Bitcoin’s default futures funding rate is 0.01 percent. For this reason, the market seems to have warmed about 12 times. Trader he said the following:

“To be honest, this looks pretty bad. A loaded exit would be for the benefit of the market.”

Volume chart with Bitcoin futures funding rate. Source: TradingView.com, Byzantine General

The trader, known as “NekoZ”, stated that Bitcoin’s technical market structure on the 4-hour chart pointed to a consolidation for a long time, but gave a hint that there will be no decline in the near term.

Trader: told:

“I see no reason for Bitcoin to drop. I add 2 more points to my long position. As long as we continue to see higher lows, there is no reason to worry.”

Traders generally believe there may be a small retracement in the overheated Bitcoin derivatives market, but the macro data is still optimistic.

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