The last days have been of great expectation for the crypto world. After, in the midst of the biggest bull rally that the cryptocurrency has experienced since 2017, the price of Bitcoin fell more than 15% in a matter of hours, leading many investors and analysts to wonder if this was the end of the rise of BTC. Therefore, today we tell you what are the key supports for the price of Bitcoin if it falls again.
A pullback in the Bitcoin rally
For a long time, the crypto community has been waiting for the start of a new big bullish rally in the price of Bitcoin. And is that, since 2017, the price of the cryptocurrency had faced high levels of volatility, but without even getting close to its historical maximum price, reached in December 2017.
Two have been the factors that have allowed this new rise in the price of Bitcoin. On the one hand, there is the third Halving in the BTC Blockchain, which halved the reward received by the cryptocurrency miners. Effectively leading to a slowdown in the rate of expansion of Bitcoin’s money supply. Which, in the face of stable or growing demand, must necessarily lead to an increase in the price of BTC.
However, it is the second factor that has provided enough demand to drive the price of the cryptocurrency. We refer to the growing interest of US institutional investors in the crypto market.
Thus, large investment firms such as Fidelity or large investors such as Paul Tudor Jones, have begun to see Bitcoin as a true alternative to other assets such as gold. Substantially increasing the world demand for virtual currency.
The key supports of its price
However, and although the rise in the price of Bitcoin seemed extremely solid, it has not removed volatility from the equation when it comes to BTC. Something that was clear with the fall in its price this Wednesday, when from $ 19,374 per BTC, the cryptocurrency fell to $ 16,490, before starting to recover and settle at $ 17,715 that is trading at the time of writing this article .
For this reason, it is crucial to know which are the key supports of the price of Bitcoin, anticipating that it may suffer a new fall in the coming days. For this we make use of the whale clusters or groups of whales, available in Whalemap. These are the sectors in which the whales last acquired Bitcoin, and thus give us an indication of the areas of support in the market.
The whale clusters show the key supports for the price of Bitcoin. Source: Whalemap
And in this sense, we would find supports around 16,694, 16,411 and 16,064 dollars. Also, going lower in the price there would be supports of this type at 16,000 15,355, 14,914 and 13,740 dollars. Therefore, we must be aware of these price levels in the coming weeks, to understand when the price of Bitcoin could continue to fall, and when instead it would be preparing a return to the uptrend.