Bitcoin whale clusters pinpoint critical levels BTC must hold to rally

Bitcoin whale clusters point toward three critical price levels to maintain a bullish market structure in the near term.

Whale clusters form when large investors purchase Bitcoin and do not move it, making it an unspent transaction.

These clusters typically indicate where crucial support levels exist and the logic is that BTC needs to maintain this level to see a prolonged rally.

Macro Bitcoin support levels represented as whale clusters.

Whale movements may signal the start of a Bitcoin uptrendWhales, or individual investors holding large amounts of Bitcoin, usually seek significant liquidity to buy or sell.

Whale accumulation often takes place as weak hands capitulate and typically a retail sell-off amidst peak fear in the markets coincides with whale purchases because there are large sell volumes to absorb.

The President's unexpected COVID-19 contraction temporarily shook financial markets and added some selling pressure on Bitcoin.

The two events caused fear in the cryptocurrency market to intensify and Bitcoin price fell from $10,900 to $10,500.

Over the following days the price recovered to $10,670 and this new found resilience corresponds with the whale clusters that formed on Oct. 2.Two technical factors could further fuel BTC momentumIn addition to the activity of whales, there are two technical catalysts that could buoy the sentiment around BTC.First, the Bitcoin futures funding rate across major exchanges are either negative or neutral.

Since the CFTC's charge against the exchange, market data provider Glassnode reports that investors pulled 45,000 BTC from BitMEX.Many industry experts foreshadowed regulatory action against BitMEX and the resulting Bitcoin outflow is not terribly surprising.