The crypto industry has been posting some gains throughout this weekend but a pullback on Sunday has resulted in a major portion of those profits being washed off. While the crypto market gained somewhere around $10 billion pushing the total market cap to $350 billion, the market has since cooled off and the number as dropped to $343 billion.
Bitcoin had a highly volatile last week where the asset traded as low as $9,900 and rallied up till $10,556, and dropping down to the $10,300 level which has been the token’s trading area for the majority of this month.
Bitcoin now seems to have entered a trading region between $9,800-$10,400 area, and crypto analyst Josh Rager notes that the price of the token has closed in a bullish territory for two weeks in a row.
Rager believes that BTC bulls need to target the $11,900 level to be able to continue pushing the prices upward.
“Until then, I remain neutral (leaning bullish) and will continue to trade altcoins at this time,” he added.
Whales on the horizon
The pattern highlighted by Rager is often indicative of whale manipulation, which is a common phenomenon within the crypto space.
According to Whalemap, a research firm that investigates and analyses the activity of large Bitcoin traders has highlighted that whales are forming a cluster at the $10,570 level.
These clusters are basically price points where these investors buy Bitcoin but do not move, spend, or trade the token, creating a point that could affect the market. The firm tweeted:
“Bubbles show locations where unspent bitcoins were accumulated. The larger the bubble, the more unspent bitcoins are located there. P.s. Unspent means these bitcoins have not been moved since they were ‘inflowed’ to a whale wallet.”
The firm states that the resistance point for whales seems to be forming between the $10570 and $11288 region. These regions have also become two major resistances for the tokens price in the short term.
As Rager had noted, if Bulls manage to break past this region, the rally is expected to continue up. However, If whales perceive the market to be unhealthy, or bearish, the $10,570 USD could be an area where they breakeven and sell their cryptocurrency.
Meanwhile, Crypto analyst, ‘CryptoHamster’, expects high volatility due to the squeezing of Bollinger Bands. The trader notes:
“Bollinger Bands baseline width is getting very narrow. Some increased volatility could be expected while we are approaching the end of the wedge.”
Furthermore, the fear of rising inflation rates could also be a push for Bitcoin according to several prominent traders.
At the time of writing, Bitcoin is trading at $10,376 and is down 1.6% in the past 24 hours.