Not Investment Advice
Bitcoin whale clusters show $57,046 and $60,045 are the crucial support and resistance levels in the short term.
The price of Bitcoin (BTC) is attempting to break the $60,000 resistance level after more than a week of ranging.
Whale clusters show that $57,046 and $60,045 are the crucial support and resistance areas in the short term.
In other words, the probability of a strong breakout in the foreseeable future would increase substantially if Bitcoin stays above $57,046 and continues to test $60,000 resistance.
Whale clusters form when high-net-worth investors buy or sell Bitcoin at a certain price and do not move their holdings thereafter.
As such, a whale cluster support typically serves as a strong macro support area for Bitcoin because whales tend to buy more when BTC falls to a level where they initially bought BTC.
On the flip side, a whale cluster resistance area would likely hold up as a sell area because whales are more likely to wait until their breakeven price to sell their positions.
According to researchers at Whalemap, the two key resistance levels for Bitcoin in the near term are $60,045 and $61,062. On March 31, the researchers noted:
“$BTC is back. Bouncing perfectly from whale supports so far. This is a good sign: in bear trends, whale resistances work better than supports and vice versa for bull trends. Whale supports are back to business now which means the trend has shifted. April should be quite fun.”
Since then, the price of Bitcoin has been ranging and consolidating between the resistance level and the $57,000 support.
Based on this trend, the researchers added that this could be the calm before the storm, anticipating a spike in Bitcoin’s volatility, which is currently at the lowest levels since November 2020. They wrote:
“The support resistance battle is intense. Levels from last week are working pretty well. Bitcoin is being capped by the $60,045 level pretty spot on. Is this the calm before the storm?
According to the pseudonymous trader known as “Byzantine General,” the Bitcoin futures market is becoming extremely overheated.
The derivatives market is surging while the BTC futures funding rate is consistently spiking above 0.12%.
On average, the default futures funding rate of Bitcoin is 0.01%, so the market is overheated by around 12-fold. The trader said:
“This looks pretty bad tbh. A good flush would be a blessing.”
A trader known as “NekoZ” stated that the technical market structure of Bitcoin on the 4-hour chart indicates that BTC could consolidate longer, but is not bearish in the near term.
The trader said:
“BTC – H4 I see no reason to be bearish on bitcoin 2 points I am adding to my long. As long as we keep showing higher lows, 0 reason to be worried.”
Traders generally echo the sentiment that Bitcoin could see a minor pullback to reset from the overheating derivatives market, but the macro technical structure remains optimistic.
INX has been accepting cryptocurrencies like Bitcoin and Ether for its SEC-approved security token IPO since September 2020.
INX Limited, a Gibraltar-based platform for trading securities and cryptocurrencies, is preparing to finish its initial public offering soon.
According to a Monday announcement, April 22 will be the last day of INX’s IPO as the company expects to have listed its token on at least one public trading platform by the end of May 2021. INX plans to launch the INX Digital trading platform shortly after the IPO ends, the firm said.
INX launched the IPO in August 2020, planning to raise up to $117 million in a security token offering approved by the United States Securities and Exchange Commission.
INX CEO Shy Datika said that the company “has secured its position as the first to execute an SEC-registered digital security IPO for both retail and institutional investors.”
INX did not specify how much the firm has raised with its IPO so far. The company did not immediately respond to Cointelegraph’s request for comment.
As previously reported by Cointelegraph, INX originally expected to finish the IPO by the end of 2020, having raised a total of $10 million as of late October.
Within its IPO, the firm has been accepting payments in major cryptocurrencies, such as Bitcoin (BTC) and Ether (ETH), as well as U.S. dollar-pegged stablecoin USD Coin (USDC). When INX introduced the crypto payment option in September 2020, Bitcoin and Ether were trading at around $10,500 and $380, respectively. Both cryptocurrencies have seen massive growth amid a major rally on crypto markets, up more than 500% since September, trading at $58,577 and $2,099 at the time of writing, respectively.
INX is finishing its IPO as major U.S. cryptocurrency exchange Coinbase prepares to go public with a direct stock listing on the Nasdaq Global Select Market. The firm expects to launch its Class A common stock trading under the ticker symbol “COIN” on April 14.