After the Bitcoin price suddenly dropped from around $ 18.500 to $ 17.500, some traders began to question whether a temporary peak has formed. However, do not worry because there are many factors that show that the uptrend is still intact.
Whales do not sell large amounts of BTC
According to data from CryptoQuant, whales are not selling large amounts of Bitcoin. This trend is notable as Bitcoin is testing strong multi-year resistance at $ 18.000.
Ki Young Ju, CEO of CryptoQuant, said the whale trading rate (Exchange Whale Ratio) remained low given the relatively low selling pressure from whales, Ju said:
Send Bitcoin short-ers, you can call me Moon Boy (mockingly call), but unfortunately, there will be no mass dumping like March this year. The Exchange Whale Ratio (3-day MA) remains very low. Long-term price increases are inevitable.
If selling pressure from miners and whales remains low in the short term, BTC may have enough firepower to initiate a broader bull run.
Bitcoin is still recovering on key whale clusters
Whalemap, an online whale-tracking market analytics company, noticed a similar trend. Analysts say whales accumulated BTC throughout November with certain price points.
In the short term, the critical whale cluster support will be $ 16.411. And as long as BTC stays stable above this support zone, the bull run is likely to continue. (A whale cluster forms when whales buy Bitcoin at a certain price and not trade within that price zone.)
Strong market reaction after a strong drop
In addition to the favorable whale-related data above, every major price drop is quickly rebounding in just the past 24 hours.
On Nov. 18, Bitcoin fell to $ 11, recording a massive pullback from a peak of $ 17.215. However, the leading cryptocurrency recovered almost immediately after every small correction, stabilizing above $ 18.520 most of the time.
Open interest is on the rise
Data from Skew shows that an open interest in Bitcoin Future markets is growing. The open rate of the futures market shows the sum of all Long-Short contracts. If lA high open interest rate will mean a large number of traders believe that the price will continue to rise.
In the short term, this means that large price movements are inevitable. So whether the price of BTC will rise even higher to make a new high or suffer a deep correction remains to be considered.
However, based on upbeat whale data and strong market response to major declines, it is likely that the next trend will be a massive rally to make a new high.