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According to on-chain data from Whalemap analysts, $ 13,000 has become a support level for the price of Bitcoin (BTC). Whale clusters indicate that whales – or large holders of BTC – are continually piling up.
Whale clusters form when a large number of BTC is transferred to a new address and BTC is not spent. This indicates that the whales have bought or transferred their BTC to other whales, signifying the buyer’s question.
A large cluster of whales emerged at the $ 13,000 level, which could morph into a key support level.
Because a $ 13,000 support would be ideal for a Bitcoin rally
Bitcoin’s ongoing rally has been different from previous bullish trends as it is considered more sustainable.
Bitcoin began to rise and gain momentum from 23 September. Since then, it has repeated the rally pattern and then consolidated, establishing clear support levels.
On September 23, BTC initially moved from $ 10,200 to $ 10,600, then consolidated. The rally began again on October 8 to $ 11,700, then stabilized at $ 11,400 for a few days. Then, on October 19, it started growing again.
Due to the healthy rally in Bitcoin, whales have accumulated BTC in key areas. The $ 13,000 whale cluster could suggest that high net worth investors aren’t expecting a massive withdrawal in the near term.
Speaking to Cointelegraph, Whalemap market analyst Andy Bohutsky explained:
“We have a $ 13,000 cluster of whales now, with many unspent bitcoins belonging to whale wallets at that level. Since the price of Bitcoin is above the $ 13,000 level, it should act as a support. Whale clustering could be due to OTC deals: looking at the volume of HODLer during the short time we spent at $ 13,000 shows that a lot of BTC moved during that period (HODLer transaction volume at 01:00 UTC now on October 23 was to more than a billion dollars). “
The $ 1.1 billion Bitcoin transaction on October 23 was later deemed a transaction carried out by Xapo. Since Xapo is a cryptocurrency custodian service provider, there’s a good chance it was an over-the-counter transfer.
The risk of a massive correction in profit taking is low
Meanwhile, another relevant metric, the Spent Output Profit Ratio (SOPR) measures whether investors in the cryptocurrency market are profiting from their positions.
Bohutsky explained that while SOPR was consistently volatile, it didn’t rise substantially when BTC broke out of $ 13,800.
These data suggest two main things. First, investors have been making regular profits over the past month, reducing the likelihood of a strong resumption of profit taking. Second, even at a multi-year resistance like $ 13,875, the whales aren’t making big profits. He said:
“The origins of the BTC spent during that period are shown in the ‘Map of bitcoins spent’ chart (red bubbles). The SOPR for 01:00 UTC on October 23 is not too high, which is quite surprising. In terms of macro levels, the volume profile shows them quite well where the levels shown also coincide with what a technical trader would consider valid even S / R. “
