Bitcoin (BTC) sought to overturn August resistance on Sep. 10 as whale buy-levels dictated BTC price action.
Whales provide short-term price ceiling
Data from Valideapp Markets Pro and TradingView showed BTC/USD hitting new multi-week highs of $21,671 on Bitstamp.
The pair capitalized on a short squeeze which began early on Sep. 9, taking it around 10% higher after plumbing the lowest levels since the end of June.
Analyzing the events, on-chain monitoring resource Whalemap noted that clusters of buy-ins by whales had effectively allowed Bitcoin to put in a floor.
$19,000 had been a high-volume zone of interest for buyers previously, and this thus remained unviolated during the visit to two-month lows.
As Valideapp reported, two other key whale support zones lie at $16,000 and $13,000.
“Whale support at 19k worked almost perfectly to the upside,” the Whalemap team commented.
“$21,543 is now the closest resistance according to whales.”
An accompanying chart showed the significance of the mid-$21,000 corridor in which BTC/USD was acting on the day. In addition to being of interest to whales, the zone functioned as support in mid-August before flipping to resistance.
“Bitcoin still resting at resistance and probably consolidating here,” Michaël van de Poppe, founder and CEO of trading firm Eight, told Twitter followers on the day.
“I’d like to see the high getting swept and then a consolidation. What happens in between? Probably we’ll see altcoins firing off heavily.”
After this impressive move, it would be quite logical (does that ever apply to bripto?) to cool off here
LTF sweep already happened, momentum falling bit by bit
If $BTC holds ~20.7K, then I think we’ll run this to 23K later#Bitcoin pic.twitter.com/s852sVRmF6
— Phoenix (@Phoenix_Ash3s) September 10, 2022
Trader Pheonix meanwhile called for a more substantial consolidation next, followed by a return to $23,000.
Ethereum expected to hit $1,900
Of additional interest to traders was Ether (ETH), which managed its highest since Aug. 19 on the day before retracing.
Related: Will Bitcoin’s rally sustain? DXY, SPX, GC and WTI could have the answer
$1,745 could still be beaten, popular Twitter account Il Capo of Crypto argued, before a comedown took hold.
“Going straight to the $1800-1900 resistance,” he forecast in a fresh update.
“I expect bearish continuation once this level has been reached. This could be on or before the merge date.”
The Merge, due Sep. 15, was already keenly eyed as a potential source of volatility on both ETH/USD and beyond.
Creditor reimbursements from defunct exchange Mt. Gox are notionally due to begin the same day, and both events will come two days after the latest Consumer Price Index (CPI) inflation data from the United States.
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