Earlier this week, Bitcoin (BTC) rallied above $20,000, raising investors’ hopes. But later, similar to its predecessors, it fell and fueled fear. Investors have focused most of their attention on BTC, which has been pushing the long-term descending trendline resistance. However, according to analysts, “BTC price has been stuck between $18,500 and $24,500 for 114 days and the recent rise supports this consolidation.
At the time of writing, the price of BTC continues to fight at $20,000. Meanwhile, it remains unclear whether the level will remain as support. Data from on-chain analytics firm Whalemap gives investors an idea. Whalemap points to three price zones that traders should focus on.
“Watch out for these 3 whale levels for Bitcoin”
According to the share of WhaleMap, BTC has witnessed whale accumulations at $ 20,380 so far. Therefore, the mentioned level turned into a kind of resistance level produced by whales. Also this resistor is working pretty well right now. Bitcoin has been rejected several times to date at $20,380. Whalemap detailed:
“Our support has remained unchanged since the $30,000 drop. This support is located at $19,174. The domain was established on June 18, 2022, with the accumulation of 101,300 BTC by whale wallets. However, whales also established other resistances at $20,380 and $21,543. In terms of Bitcoin, for the rise, first of all, the $ 20,380 that the whales have been waiting for needs to be reclaimed.”
WhaleMap also reviews technical analysis for BTC. Accordingly, the Bollinger Bands narrowed on the daily time frame. BTC futures open interest has reached a near record high of over 604,000. Also, the price is trading outside a long-term trendline resistance. According to WhaleMap, all this points to the beginning of a directional movement.
“Cryptocurrency market may be preparing for another drop”
As the chart below shows, investors’ risk appetite continues to decline. The assets that first broke out and were sold by investors during the bear market are cryptocurrencies. It’s not surprising that risk assets are sold during times of crisis, according to Whalemap. However, the firm warns that Bitcoin and altcoins could witness a new sell-off due to the recent volatility in stocks, the FED’s hawkish monetary policies and increased sales.
What levels are next for Bitcoin?
Currently, Bitcoin and the broader crypto market have a number of bullish and bearish factors. These factors are located in a zone where the trend can determine its next direction. As noted by Delphi Digital, BTC is currently following the trajectory of previous market cycles. This similarity is especially increasing in the 2018 cycle.
There are Bitcoins, crypto market and stock metric showing consolidation and supporting the possibility of a relief rally in the short term. However, the general trend is downward. If stocks see some relief and rise, the tight correlation between BTC and equity markets would suggest a similar style of price action in crypto. However, a Bitcoin relief rally is likely to be capped at $27,500, where the 200-day moving average is located.
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