BTC whale clusters show $44,214 is key to holding rally

11 Feb 2021

Bitcoin whale cluster data reveals $44,214 is the key near term point that the cryptocurrency must hold on to.

This is according to a Cointelegraph report, as over the past 24 hours, Bitcoin experienced a sell-off after hitting a new high of around $48,000, going on to drop 8% to reach $43,750 on Binance.

Whale clusters arise when these HNW investors buy Bitcoin at a specific price level and then don’t move them.

As such, they act as resistance levels.

According to Whalemap analysts, losing the $44,214 support level may result in a fall to $39,843 in the short term.

However, should the price hold, it would signify a new support area following the Tesla-fuelled rally.

“Losing $44214 should open the door for BTC to visit $39843 as there are not many supports in between. For the time being though, $44214 should provide some support. There is also great demand at 38k prices so BTC should not be falling below that,” the analysts stated. 

In addition, there are a number of reasons to support a Bitcoin near term bullish trajectory, such as a high number of active Bitcoin addresses and exchange supply of Stablecoins.                                                       

This indicates a positive uptrend for Bitcoin. According to Santiment researchers: “Both #Bitcoin's active addresses and the exchange supply of #stablecoins like $USDT are remaining high, which is an encouraging sign that $BTC can rebound after today's mild retrace.” 

Furthermore, the number of non-zero Bitcoin addresses is also at all-time highs, indicating an influx of new buyers piling into Bitcoin. 

According to Three Arrows Capital co-founder, Kyle Davies, the cryptomarket is witnessing mass adoption: “We are witnessing mass adoption, right here right now. Stalwarts of the old world will convert, the crypto native will flourish. Awaken new paradigm of decentralized money. Don’t be scared.”