What are the key supports for Bitcoin pricing?

Given the volatility of the last few days, today we’ll tell you what the key supports are in the price of Bitcoin according to the whales clusters.

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The last few days have been ones of great expectation for the crypto world. After, in the middle of the biggest upward rally that the cryptomoney has experienced since 2017. The price of Bitcoin fell more than 15% in a matter of hours, leading many investors and analysts to wonder if this was the end of the BTC’s rise. That’s why today we’re telling you what the key supports are for the price of Bitcoin if it falls again.

Robert Kiyosaki: „Bitcoin points to the moon“
A setback in the Bitcoin rally
For a long time, the crypto community was waiting for the start of a new big rally to raise the price of Bitcoin. Since 2017, the cryptcoin price had been facing high levels of volatility, but without even getting close to its historical maximum price, reached in December 2017.

Two factors have allowed this new rise in the price of Bitcoin. On the one hand there is the third Halving in the BTC Blockchain, which halved the reward received by the cryptomint miners. This effectively led to a slowdown in the rate of expansion of Bitcoin’s money supply. This, in the face of stable or growing demand, was bound to lead to an increase in the BTC price.

However, it is the second factor that has provided sufficient demand to push up the price of cryptomoney. We refer to the growing interest of US institutional investors in the crypto market.

Thus, large investment firms such as Fidelity or large investors such as Paul Tudor Jones, have begun to see Bitcoin as a real alternative to other assets such as gold. Substantially increasing global demand for virtual currency.

3 reasons behind the Bitcoin crash
The key supports of your price
However, although the rise in the price of Bitcoin seemed extremely solid, it has not removed volatility from the equation when it comes to BTC. This was clear from the drop in price on Wednesday, when the crypt currency fell from $19,374 per BTC to $16,490, before beginning to recover to the $17,715 it was trading at the time of writing.

For this reason it is crucial to know which are the key supports of Bitcoin’s price, anticipating that it may suffer a further fall in the next few days. To do this we use the whale clusters, available from Whalemap. These are the sectors in which the whales last acquired Bitcoin, and therefore give us an indication of the support areas in the market.

The whale clusters show the key supports for the price of Bitcoin. Source: Whalemap
The whale clusters show the key supports for the price of Bitcoin. Source: Whalemap
And in this sense, we would find supports around 16,694, 16,411 and 16,064 dollars. Likewise, going below the price, there would be supports of this type at 16,000, 15,355, 14,914 and 13,740 dollars. Therefore we must be aware of these price levels in the coming weeks, to understand when the price of Bitcoin could continue to fall, and when it would be preparing a return to the uptrend.

Translated with www.DeepL.com/Translator (free version)

29. November 2020