- A bitcoin whale moved 7,800 BTC between wallets of unknown origin according to the Whale Alert.
- Bitcoin faces a shortage of support areas further increasing the potential for a drop below $9,000.
Bitcoin recovery from today’s support at $9,600 appears to be losing steam short of $9,800. The shallow recovery comes after an unexpected dive below $10,000. The declines in Bitcoin’s market has resulted in an end to the altcoin celebrations. Ethereum reversed towards $, Ripple dived under $0.3 while Bitcoin Cash tested the support at $300.
The drop in Bitcoin price comes amid a busy 24 hours of Bitcoin whales’ activity. According to the Whale Alert, 11,407 BTC worth about $116 million have been transferred. The largest single transaction of them containing 7,800 BTC was transferred between two wallets whose origin is unknown. The Daily Hodl suggests that the transaction is likely to have been an over-the-counter (OTC) sale or even a move from one wallet to another due to security reasons.
Bitcoin Confluence Levels
Bitcoin dropped has further jeopardized the key support areas including $9,800 and $9,600. For the confluence, indicators suggest the most viable support is $9,416.95. A couple of indicators converging to form the support are the previous month low and pivot point 1-week S2. The scarcity in support areas means that potential for Bitcoin drop to $8,800 and $8,697 is great.
On the upside, there exists one prominent resistance level that will determine the next direction for Bitcoin price. However, before that, the bulls must prove their ability to clear the short-term resistance at $9,930 represented by the 23.6% Fibonacci one-week. Glancing higher the upside will come face to face with another hurdle at $10,136. The zone is a meeting point for the Bollinger Band 1-hour middle, SMA 100 15-mins, SMA 4-hour and the 23.6% Fib one-day.
The most significant resistance (mentioned above) is $10,34. The zone is home to the Bollinger Band 1-day middle, pivot point 1-day R1, SMA 5 one-day, previous high one-day and SMA 10 one-day. If Bitcoin manages to clear this resistance, there is a chance that it will find the momentum to attack $10,444 and correct towards $11,000.
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