As per Whalemap, an on-chain data analysis company that concentrates on Bitcoin (BTC) whale actions, near term clumps is seen at $10,570.
Whale clusters are created when whales purchase Bitcoin and retain it. Zones containing large quantity of unspent/unmoved BTC are regarded as area of interest, usually a resistance level. Whalemap details:
Whales or individuals possessing huge quantity of BTC would generally wish to dilute either at profit or breakeven, considering the market sentiment and direction. If whales expect the prevailing trend to be weak, the $10,570 level could act as a zone where whales breakeven.
The two largest whale clusters in the near-term are spotted at $10,570 and $11,800. It is not surprising that both levels also act as main resistance zones for BTC in the intermediate term.
Hourly whale bubble resistances at $10570 and $11288. pic.twitter.com/8B5VErecbl
— whalemap (@whale_map) September 10, 2020
Bubbles show locations where unspent bitcoins were accumulated. The larger the bubble, the more unspent bitcoins are located there.
P.s. Unspent means these bitcoins have not been moved since they were “inflowed” to a whale wallet.
— whalemap (@whale_map) September 10, 2020
Considering the reversal of Bitcoin above $10,000, some traders forecast BTC to retest the $11,000 to $11,300 level. As per the cryptocurrency trader Edward Morra, Coinbase order book has steadily indicated impressive buying pressure at $10,000 level. He stated:
$BTC
In case bitcoin dips, coinbase has some fat orders below ? pic.twitter.com/JMGmxonDBr— Edward Morra (@edwardmorra_btc) September 11, 2020
The strong support level of $10,000 could pave way for Bitcoin to test $10,570 level once again and likely breach it. Currently, several traders seem to be circumspectly upbeat, at minimum up to mid-$10,000.
Many of the short-term bearish and bullish arguments are also rooted surrounding the $10,570-$11,000 resistance level. Failure to cross the price range increases the chances of downtrend in the near-term. Currently, many of the on-chain indicators are backing short-term downtrend for Bitcoin. Data provided by Glassnode, for illustration, indicates Bitcoin fee for deposits to exchanges have risen to limits unobserved since 2017. The academics stated:
Currently, almost 10% of all #Bitcoin miner fees are spent on transactions that deposit $BTC to centralized exchanges.
This is a 2x increase since the beginning of the year, and levels we haven’t seen since late 2017.
Chart: https://t.co/AWgu8BYe1g pic.twitter.com/Qjfn4UTLcT
— glassnode (@glassnode) September 11, 2020
