Since topping out at $19,484, Bitcoin price has struggled to reclaim the $17,000–$18,000 level. As the price continues to decline, traders are targeting key underlying support levels to determine where traders will buy if Bitcoin (BTC) price continues to fall.
The immediate support levels based on whale clusters are $16,694, $16,411 and $16,064. Below the $16,000 support, $15,355, $14,914 and $13,740 could serve as macro support areas.
Whale clusters form when whales accumulate BTC and do not move their recently acquired funds. The clusters also indicate where whales last bought, signifying potential support areas.
$16,411 is the short-term level to watch for Bitcoin
The price of Bitcoin has been showing weakening momentum in the past 24 hours. Following such a major correction, some consolidation is to be expected as the price searches for stability.
One positive trend is that buyers have been aggressively defending the $16,411 support area, which is marked by whale clusters. This shows that there is sufficient buyer demand in the market to prevent a broader pullback, at least in the short term.
On Nov. 27, Bitcoin tested the $16,200 to $16,400 support range twice in a span of 22 hours. Both retests were met with a decent response from buyers, as BTC surged above $16,800 in both cases.
For most of the day, Bitcoin remained above $17,000 and peaked at $17,400, showing signs that BTC is regaining its momentum.
Still, some traders are not ruling out the possibility of BTC dropping to the lower macro support areas. A pseudonymous trader known as “Wolf” said the weekly chart is showing signs of overextension. As such, he said that the $13,000 region could get tested. The trader explained:
“Differently from $ETH, $BTC looks way over extended from the weekly 21EMA, still far from interesting support. My ideal entry would be the outlined major support @ 13k's. Currently we might hold the 16213 weekly support, then head lower for an ABC correction.”
Another pseudonymous trader known as “Crypto Capo” suggested a similar trend. He said that he sees a scenario playing out where BTC rises to $18,000 then falls to the $13,000 region.
$BTC USD 6 Hour— Koroush AK (@KoroushAK) November 26, 2020
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
Traders expect Bitcoin's consolidation to last for weeks
Although there are bearish short-term predictions from long-time Bitcoin investors, some technical analysts say that consolidation could last a while.
Michael van de Poppe, a full-time trader at the Amsterdam Stock Exchange, said the market faced a healthy pullback. Following the correction, Poppe said that consolidation could last for several weeks. He said:
“Relax and zoom out, market is making a healthy correction and giving everyone a great opportunity to invest. Don’t be impatient, the market will make a natural bottom to confirm it’s in. It just takes weeks.”
In the short term, the immediate area of interest for buyers remains the three whale cluster levels at $16,694, $16,411 and $16,064. If BTC falls below these levels convincingly, the probability of a deeper correction could significantly spike.
Following the sharp drop in the price of Bitcoin, whale clusters show several areas as key support levels. These levels could allow BTC to stabilize and regain its momentum in the short term.