According to on-chain data analysis of Whalemap, $13,000 level has become support for the price of Bitcoin (BTC). Whale clusters show that whales which are large BTC holders, are continuously accumulating.
Whale clusters are created when a large number of Bitcoin are transferred to a new address and the Bitcoin is unspent. This shows that whales either bought or transferred their BTC to other whales, signifying buyer demand.
a $13,000 support level would be ideal for a Bitcoin rally
The ongoing rally of BTC has been different from previous ones as it is considered to be more sustainable.
Bitcoin began to rally and gain momentum from Sep. 23. Since then, it has repeated the same pattern of rallying and then consolidating, establishing clear support levels.
On Sep. 23, Bitcoin initially rallied from $10,200 to $10,600, then consolidated. The rally started once again on Oct. 8 up to $11,700, then stabilized at $11,400 for a few days. Then on Oct. 19, it started to rally again.
Due to the healthy rally of Bitcoin, whales have been accumulating BTC in major areas. The whale cluster at $13,000 might suggest that high-net-worth investors do not expect a massive pullback happening in the near term.
Bitcoin price analysis by Andy Bohutsky at Whalemap confirmed that:
“We have a whale cluster at $13,000 now, with a lot of unspent bitcoins belonging to whale wallets at that level. Since, Bitcoin’s price is above the $13,000 level — it should be acting as support. The origin of the whale cluster could be due to OTC deals: looking at the HODLer volume during the short time we spent at $13,000 shows that a lot of BTC was moved during that time (HODLer transaction volume at 01:00 UTC time on 23 October totaled to more than $1billion dollars).”
The $1.1 billion Bitcoin transaction on Oct. 23 was found to be a transaction by Xapo. Since Xapo is a crypto custodial service provider, there’s a good chance that this was an over-the-counter transfer.
Risk of a large profit-taking correction is low
Meanwhile, another relevant metric, the Spent Output Profit Ratio (SOPR) shows whether investors in the crypto market are taking profit on their positions.
Bohutsky said that while SOPR has been consistently volatile, it did not substantially rise when Bitcoin surpassed $13,800.
This data reveals two important things. First, investors have been taking profit regularly throughout the past month — reducing the probability of a massive profit-taking pullback. Second, even at a multi-year resistance such as $13,875, whales are not taking large profits. He said:
“The origins of BTC that was spent during that time is shown in the ‘Map of spent bitcoins’ chart (red bubbles). SOPR for the 01:00 UTC time on 23 October does not go too high though which is quite surprising. In terms of macro levels, volume profile shows them pretty well where the levels shown also coincide with what a technical trader would consider valid S/R as well.”