Bitcoin price (BTC) is trying to break the $ 60,000 resistance level after more than a week of fluctuations.
The whale clusters show that $ 57,046 and $ 60,045 are key areas for near-term support and resistance.
In other words, the likelihood of a strong breakout in the foreseeable future will increase significantly if Bitcoin stays above $ 57,046 and continues to meet resistance at the $ 60,000 level.
Why Whale Clusters Are Important to Bitcoin
Whale clusters form when wealthy investors buy or sell bitcoins at a specific price and then don’t move on to assets.
As such, whale cluster support usually serves as a strong macro support area for Bitcoin because whales tend to buy more when BTC drops to the level at which they originally bought BTC.
On the other hand, an area of resistance to whale aggregation is likely to remain a selling area because whales are more likely to wait for a break-even price to sell.
According to researchers at Whalemap, the two major resistance levels for Bitcoin in the near future are $ 60,045 and $ 61,062. On Wednesday, researchers noted:
“$ BTC is back. So far, it bounces off the whale legs perfectly. This is a good sign: in a bearish trend, whale resistance works better than support, and vice versa, in a bullish trend. Whale supports are back in business, which means that the trend has changed. April should be a lot of fun. ”
Bitcoin whale clusters. Source: Map of whales.
Since then, Bitcoin’s price has fluctuated and consolidated between the $ 57,000 resistance and support levels.
Based on this trend, the researchers added that there could be a lull before the storm waits for bitcoin volatility to increase, which is currently at its lowest level since November 2020. They wrote:
“The battle between support and resistance is intense. Last week’s levels are working well enough. Bitcoin is capped at a fairly high $ 60,045 mark. Is this the calm before the storm? ”
Traders’ attitudes towards bitcoin are mixed
The Bitcoin futures market is getting extremely overheated, according to a pseudonym trader known as Byzantine General.
The derivatives market is growing and the BTC futures funding rate has consistently exceeded 0.12%.
On average, the standard funding rate for Bitcoin futures is 0.01%, so the market is overheated by about 12 times. The merchant said:
“It looks very bad. A good flush will be a blessing. ”
Bitcoin price chart showing the rate and volume of futures funding. Source: TradingView.com, Byzantine General.
A trader known as NekoZ stated that the technical structure of the bitcoin market on the 4-hour chart indicates that it may take longer for BTC to consolidate, but this will not be bearish in the near future.
The merchant said:
“BTC – H4. I see no reason for the bearish sentiment in bitcoin. I add 2 points to my long. As long as we continue to set higher levels, there is nothing to worry about. ”
Traders generally share the view that Bitcoin may experience a slight pullback to recover from an overheated derivatives market, but the macro-technical structure remains bullish.