According to the analysis of the whale clusters, it is indicated that both the whales and hodlers are responsible for the recent sell-off. Recently the price of Bitcoin has declined under $54,000 on 20th April.
On the other hand, whale clusters have been forming that indicate that crucial areas of reclamation in the short-term include $55,172 and $56,274. The cryptocurrency sector started to decline once again soon after the preliminary relief rally that took place on 19th April, Monday.
Bitcoin Price Experience Instability
Bitcoin price has slid to $54,000 from $57,000 and even lost the support level from the cluster at $55,172. During the near term, it becomes extremely important for BTC to rally more than the $55,172 level.
Bitcoin must reclaim that mark as its support level. In case they fail to do so, they might risk the $51,000 testing which is the macro support zone.
Whale clusters are created during the time of selling or purchasing a large amount of BTC by high net-worth investors. Due to the inclination of buying BTC by whales at a previous area, whale clusters can often be positive and indicate strong support zones.
$58,000 mark is an area of huge interest whereas $55,172 and $56,274 are significant near-term levels. If BTC is not able to reclaim the $56,274 mark and declines further, it suggests whales not adding anything to ongoing positions.
Following this, $51,000 will emerge as a macro support mark. If this breaks, then BTC might fall lower.
When BTC had a sharp decline to almost $50,000 from a staggering $60,000 on 18th April, both hodlers and whales were equally responsible for it. This is mainly because whales are able to locate the place where hodlers coins come from.
