Bitcoin $14k Support Level - Map Of Unspent Bitcoins - Price Prediction.

Bitcoin $14k Support Level - Map Of Unspent Bitcoins - Price Prediction.

2020-08-16 | Mike Hallen

Bitcoin $14k Support Level - Map Of Unspent Bitcoins - Price Prediction.

Renowned on-chain analyst, David Puell, laid out several key data points on 16th Aug. based upon the past 4-year cycle of Bitcoin [BTC]. Data reveal that the $14k level might be a crucial price point for Bitcoin due to whale clusters.

In line with Puell, whale clusters show many large buyers bought within the $9,000 to $12,000 range. Whales that bought at $9,000 are seeing relatively high profits, and people that bought the highest are at a breakeven point.

The clusters could end in a volatile price action where buyers and sellers aggressively attempt to escape from the $12k to $14k price range.

Bitcoin $14k Support Level - Map Of Unspent Bitcoins - Price Prediction.

The data support arguments for both a pullback and a continuation. If whales bought at a price around $9k and $12k, they need a compelling reason to require profit within the $12k to $14k price range. They have already seen some profits and/or are at breakeven after months of stagnation.

However on the other side, if the whales are in profit and are at breakeven, they could want to ascertain the rally continue. Puell said that he expects an accumulation phase to occur within the $10,000 region following BTC’s move to $12k or $14k. Explaining further, he said:

“Finally, unspent whale clusters confirm an excellent battle taking place. Two actors at play: top buyers at 12k-14k reaching their breakeven price, and present buyers active after the primary higher high in over a year. If we get a correction, it'll presumably end in another major cluster of re-accumulation at the 10k area [as expected from the volume profile before]; if we breakout, well... enjoy the ride.”

The present ongoing landscape of the Bitcoin market is exclusive in comparison with previous cycles. Puell said that due to macro factors, including the pandemic, Bitcoin saw unprecedented price movements.

For instance, earlier on 13th March, the worth of Bitcoin dropped to as low as $3,596 USD on BitMEX within a 50% drop overnight. The weird price movements Bitcoin saw throughout this year as a results of unexpected external variables increase the probabilities of an uncommon price cycle. Puell explained:

“Looking only a year and a half back, we had a number of the foremost interesting market structures in any Bitcoin cycle. Within several attempts at a ‘typical’ bullish trend with a robust halving narrative, two swans hit price discovery one after the other: PlusToken and coronavirus.”

What Analysts Do Believe?

Within the short to medium-term, there are several variables that would have an impression on the worth trend of Bitcoin.

Within earlier some months, Bitcoin saw some correlation with gold, possibly due to the uncertainty in global markets causing investors to think about alternative stores useful . The low-interest rate policies by central banks across the world and therefore the rapidly growing funds will likely have a positive effect on Bitcoin price also, as many analysts do believe.

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