After Bitcoin (BTC) price suddenly dropped from around $18,500 to $17,200, some traders began to question whether a local top had formed but there are multiple factors that suggest the bull run is still intact.
Following the initial pullback, BTC continuously showed extreme volatility, demonstrating market uncertainty.
The four factors that show Bitcoin’s momentum remains strong are whale inflows, a strong market response, resilience above each whale cluster, and high open interest.
Whales are not selling large amounts of BTC
According to data from CryptoQuant, whales are not selling large amounts of BTC. This trend is noteworthy because Bitcoin is testing a heavy multiyear resistance level at $18,000.
Ki Young Ju, the CEO of CryptoQuant, said the Exchange Whale Ratio remains low. Given the relatively low selling pressure from whales, Ju said:
“Dear $BTC shorters, You can call me a moon boy, but unfortunately, there won’t be a mass-dumping like March this year. Exchange Whale Ratio (90-day MA) is still very low. Long-term bullish is inevitable.”
If the selling pressure coming from miners and whales remains low in the short term, BTC could have sufficient firepower to kickstart a broader rally.
Bitcoin remains resilient above key whale clusters
Whalemap, an on-chain market analysis firms that tracks whales, have found a similar trend. The analysts said that whales accumulated BTC throughout November The price points from which whales bought BTC are holding.
In the near term, the key whale cluster support for Bitcoin is at $16,411. As long as BTC stays stable above the $16,400 support area, the bull run will probably hold together.
A whale cluster forms when whales buy Bitcoin at a certain price level and do not move them elsewhere. The analysts explained:
“Bubbles indicate prices at which whales have purchased BTC that they are currently holding. Bubbles also visualise support levels. Last time we bounced from…