The price of Bitcoin (BTC) began to recover on Dec. 12 after briefly dipping below $ 17,700 yesterday. Whale clusters show that the USD 18,600 level remains the biggest short-term roadblock for BTC.
Whale clusters form at a price where whales collect Bitcoin and do not move their holdings. Since whales are more likely to sell at a profit or break even rather than at a loss, clusters typically act as support or resistance levels.
In the short term, Whalemap whale clusters show $ 18,600 and $ 18,800 as the main areas of resistance for the bulls.
Bitcoin needs to reclaim $ 18,600- $ 18,800 to revive the rally
As before Cointelegraph reportedBitcoin initially ran the risk of a deeper correction without a strong response from buyers above USD 18,000.
Michael van de Poppe, a full-time trader with the Amsterdam Stock Exchange, said the USD 16,000 level is the last major area of support before USD 13,000. As such, the USD 17,600 support area is critical because a drop below it could leave BTC vulnerable to a sustained downtrend with even lower supports being tested.
But Bitcoin is starting to recover and whale clusters suggest a $ 18,600 to $ 18,800 relief is likely. However, based on tech support and resistance levels, the pseudonymous trader Mayne reaffirmed that USD 18,700 remains an area of interest for sellers. He said:
If this rejection confirms, we see one more leg down. Looks like the $ 17.2k long trade is busy get there or just drill through. Claim $ 18k and we might squeeze some late shorts back up to $ 18,700 on the weekend. “
Traders have also become more cautious about net shorting Bitcoin in recent days. While BTC’s momentum has waned since the start of the week, some believe the inflows of large capital from institutional investors could offset the risk of a serious downturn.
Another pseudonymous trader, known as “Salsa Tekila,” noted that “irrational FOMO shorting” was likely the cause of Bitcoin’s collapse. After an intense fall, a relief rally becomes more likely. He wrote:
‘I’m not too keen on making a short hedge anymore, I’ll probably stay here long and scalp calm. Nice 150 MM coin, nice down-move after good news, as if people were irrationally short FOMO. Latest good news, $ BTC pumped hours later for refueling, different response. “
Where are the support areas for whale clusters?
Above USD 17,000, whale clusters show two major areas of support at USD 17,170 and USD 17,700. On December 12, when the price of Bitcoin fell to $ 17,572 on Binance, Bitcoin saw a rapid turnaround and rebounded above $ 17,700 within three hours.
Bitcoin’s rapid recovery from $ 17,600 to $ 18,400 within 24 hours shows that there is high demand below $ 18,000. In the short term, aggressive bidding on the whale cluster by buyers would likely prevent a sharp correction.
However, a concern in the near future is the Crypto Fear and Greed Index. The latest reading still shows “extreme greed” in 90 out of 100, suggesting downside risk remains high.