- Analyst states that 1.87 million addresses hold 730K BTC in the $41.2K to $42.4K price range.
- Bulls have saved BTC from falling below the SMA of the Bollinger band during this spike.
- The whales could use this opportunity to fish in troubled waters
A crypto analyst by the Pseudonym Ali stated that BTC has broken below a key supply zone ranging from $41,200 to $42,400, on his Twitter handle. In the above mentioned price zone 1.87 million addresses had accumulated 730,000 $BTC. Since BTC has been losing value, this could prompt these holders to sell BTC in order to minimise the losses they could incur.
In the event the holders take the above mentioned course of action, then BTC could be looking at $37,500 and $38,700 as support zones. This region is occupied by 1.28 million addresses holding 553,000 $BTC, stated Ali.
When considering the chart below, it could be noted that BTC was trading at $41.84K when the markets opened for trading last week (12 December). Shortly after the markets opened, BTC crashed and reached $40.5K on the same day. However, by December 14, BTC was able to rise above the opening market price and reached its weekly maximum price of $43.3K.
From December 14 to the end of December 17, BTC was able to fluctuate above the opening market price of $41.84K, as stated above. Nonetheless, today the bears applied more pressure and made the bulls yield. As such, BTC made lower lows and lower highs and is currently trading at $41.3K.
The above chart shows that BTC retraced after touching the upper Bollinger band. It was supported by the SMA for some time, but now, it seems the SMA is giving into the bear pressure. During this spike BTC has never fallen below the SMA. Hence, the question is will the bulls come to the rescue for BTC.
At this pivotal point Santiment tweeted that wallet addresses holding (>1BTC) were holding most coins ever–7.3% of the supply. Since these small BTC holder addresses might short their position to minimise the loss, there is a high chance that the whales could dump and dismantle the support levels. This could liquidate these minor holders’ positions. Thereafter, the whale could buy BTC at a lower rate. Hence, traders may need to be careful.
The Fixed Range Volume Profile shows that moving towards the upwards direction is harder than for BTC to fall down as there is high trading activity.
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