Since Bitcoin's price reached $ 19,484, it has struggled to regain the $ 17,000 - $ 18,000 level. As the price continues to fall, traders are targeting key support levels to determine where traders will buy if the Bitcoin (BTC) price continues to decline.
Immediate support levels based on whale populations are $ 16,694, $ 16,411, and $ 16064. When falling below the $ 16,000 support, $ 15,355, $ 14914, and $ 13,740 can be used as total support areas.
Whale groups form when whales collect Bitcoin and not transfer recently earned money. Groups also indicate where the whales were last purchased, indicating potential support areas.
Bitcoin whale groups. Source: Will Map
$ 16,411 is the short-term level to watch from Bitcoin
Bitcoin price has shown weak momentum over the past 24 hours. After this major correction, some consolidation is expected as the price looks for stability.
One positive trend is that buyers have been aggressively defending the $ 16,411 support zone, which features whale populations. This indicates that there is sufficient demand from buyers in the market to prevent a wider pullback, at least in the short term.
On November 27, Bitcoin tested the support range between $ 16,200 and $ 16,400 twice within 22 hours. Both met with a good response from buyers, with Bitcoin rising above $ 16,800 in either case.
During most of the day, Bitcoin remained above $ 17,000 and peaked at $ 17,400, indicating that Bitcoin is regaining momentum.
However, some traders do not rule out the possibility of Bitcoin dropping into lower overall support areas. A trader under a pseudonym "Wolf" said that the weekly chart is showing signs of an excessive extension. As such, he said the $ 13,000 region could be tested. As the trader explained:
“Unlike the Ethereum against the dollar pair, the Bitcoin against the dollar appears to be stretching a lot from the weekly 21-day exponential moving average, still far from any interesting support level. My ideal entry would be the key support set at $ 13K At the moment, we may maintain the weekly support level at $ 16,213, then head down to the ABC correction.
Another pseudo-trader known as "Crypto Capo" suggested a similar trend. He said he sees a scenario happening where Bitcoin rises to $ 18,000 and then drops to $ 13,000.
$ BTC USD 6 Hour
Interesting price action means more technical analysis. I expect the trend to cool off here. $ 17214 is the key level to watch, daily close below here and I expect us to move to test the 0.382 level.
Love these conditions. pic.twitter.com/nGobpRAXiN
- Koroush AK (@KoroushAK) November 26, 2020
Traders are expecting the Bitcoin consolidation to continue for weeks
Although there have been short-term bearish forecasts from Bitcoin investors for a long time, some technical analysts say the consolidation could last for a while.
Michael Van de Pope, a full-time trader at the Amsterdam Stock Exchange, said the market faced a healthy slump. After the correction, Bob said the fixation could last for several weeks. He explained:
"Relax and walk away, the market is making a healthy correction and giving everyone a great opportunity to invest. Be patient, the market will make a natural bottom to confirm entry, it will only take weeks."
In the short term, the area of immediate interest of buyers remains the levels of the three whale groups at $ 16,694, $ 16,411, and $ 16064. If Bitcoin drops convincingly below these levels, the likelihood of a deeper correction could rise dramatically.
After the sharp fall in the Bitcoin price, whale groups are showing several areas as major support levels. These levels may allow Bitcoin to stabilize and regain momentum in the short term.
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