An analysis suggests that both whales and hodlers were responsible for the latest BTC sell-off.
photo by bitcoin.com.mx
The price of Bitcoin has fallen below $ 54,000 on April 20, as whale groups suggest that the key zones for BTC to rebound in the short term are $ 56,274 and $ 55,172.
The cryptocurrency market began to slide once again after an initial relief rally on Monday. The price of Bitcoin fell from $ 57,400 to below $ 54,000, losing the whale group support level of $ 55,172.
Why is Bitcoin falling in price?
photo by bitcoin.com.mx
In the short term, it is crucial that the price of Bitcoin rises above $ 55,172 and recovers it as a support level. Otherwise, you risk testing the $ 51,000 support macrozone.
Why are whale group support zones important?
Whale pools are formed when whales or high net worth investors buy or sell a significant amount of Bitcoin. Since whales tend to buy Bitcoin in an area that they previously bought in to defend their position, whale pools are often a positive indicator of strong support areas. Have we already reached that point? One analyst says it’s not “altcoin season” Analysts at Whalemap, a data analysis platform that tracks whale activity, noted that there is a lot of whale volume in the $ 58,000 area. In the short term, as the $ 58,000 area is a zone of interest, analysts said that the $ 56,274 and $ 55,172 are the key short-term levels to watch. Analysts said: "A lot of whale wallet volume was occurring around $ 58,000. This should be a fighting zone for Bitcoin. Currently the $ 56,274 and $ 55,172 zones are important supports that have to be respected to continue the uptrend. If the price of Bitcoin does not recover to the $ 56,274 mark and continues to decline, it would mean that the whales are not adding coins to their existing positions. If this is the case, the $ 51,000 macro support level would be at risk of being tested once again, as Cointelegraph previously reported. The $ 51,000 level is critical because, if broken, it would cause Bitcoin’s upper low structure to break down, potentially putting the entire Bitcoin bull market in jeopardy. “These are the key levels to watch out for right now,” add Whalemap analysts. There was a build-up at the current level, but if the $ 55,000 level does not hold, we could easily slide down to $ 47,438, where a strong support level is located.
Both whales and hodlers are responsible for the sale
On April 18, the price of Bitcoin fell sharply from the $ 60,000 mark to almost $ 50,000 in what was the lowest point of the day.
According to analysts at Whalemap, it wasn’t just long-term hodlers who sold, but so did whales and high-net-worth investors.
They wrote:
"Since Whalemap allows us to track where the HODLer coins came from, we can verify that the coins that moved yesterday were originally bought after the 2020 halving. Checking the whale exit map we see that the HODLer coins that were moved yesterday were actually not only from the HODLers, but also from the whales, since the bubbles are in the same places. "
Based on this trend, it is difficult to speculate whether Bitcoin would see a major rise in the short term and resume its uptrend once again.
