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.”
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