Blockchain analytics platform Whalemap is mapping out the key levels to watch for in Bitcoin (BTC) this month.
In a new tweet, the on-chain insights platform highlights that Bitcoin’s correction, which drove the leading crypto asset from an all-time high of $61,683 to around $51,000, has officially ended after price respected the support of $57,000, indicating a possible trend reversal.
“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.”
Whale clusters show when high net-worth investors buy or sell Bitcoin at a certain price. The levels are often seen as areas of support or resistance.
Whalemap adds that for now, Bitcoin is trapped in a narrow range between the whale clusters of $60,000 and $57,000.
“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?”
Independent on-chain analyst Willy Woo also sees the area above $54,000 as a critical level for the flagship cryptocurrency.
“Looking at wallet flows, $54,000 is the strongest area of BTC price discovery by long-term investors since $11,000. Typically, BTC forms a strong base of price discovery 2-3x above the (prior cycle) all-time-high before launching into bull market highs. This phase is almost complete.”
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Featured Image: Shutterstock/Alexander Mozymov