The price of bitcoin (BTC) is trying to break through the $60,000 resistance level after more than a week of fluctuations.

The Whale clusters show $57,046 and $60,045 as critical areas of short-term support and resistance.

In other words: The chances of a strong breakout in the near future will increase significantly if bitcoin stays above $57,046 and continues to test resistance at $60,000.

Why Whale Blocks Are Important to Bitcoin

Whale clusters occur when high net worth investors buy or sell bitcoins at a certain price and then don’t move their assets.

Therefore, whale cluster support generally serves as strong macro support for bitcoin, as whales tend to buy more when BTC drops to the level at which they initially bought BTC.

On the other hand, the whale cluster resistance zone should remain a sell zone, as whales are more likely to wait for the equilibrium price to sell their positions.

Two key short-term resistance levels for bitcoin are at $60,045 and $61,062, according to researchers at Whalemap. March 31, the researchers noted:

$BTC is back. He’s bouncing well on the whale candlesticks so far. This is a good sign: in downward trends, whales resist better than poles, and vice versa in upward trends. Support for whales is back, which means the trend has changed. April will be fun. Whale Cluster. Source: Mapping whales

Whale clusters suggest that this key Bitcoin level can trigger an explosive rally

Since then, the bitcoin price has been fluctuating and strengthening between the resistance level and the $57,000 support.

Based on this trend, the researchers added that this could be the calm before the storm. They expect bitcoin’s volatility, which is currently at its lowest level since November 2020, to increase. You wrote:

The battle for support and resistance is fierce. Last week’s levels work very well. Bitcoin reached a nice point at $60,045. Is this the calm before the storm?

Investor sentiment for bitcoin is mixed

The bitcoin futures market is becoming extremely overheated, according to a pseudonymous trader known as Byzantine General.

The derivatives market is growing rapidly, while the coverage ratio for BTC futures contracts regularly exceeds 0.12%.

On average, the default funding rate for bitcoin futures is 0.01%, meaning the market is overheated by a factor of 12. The trader said:

It looks bad. A good flush would be a blessing.Bitcoin price chart with futures price and volume. Source: TradingView.com, a Byzantine general

Whale clusters suggest that this key Bitcoin level can trigger an explosive rally

A trader known by the name of NekoZ explained that the technical structure of the bitcoin market on the 4-hour chart indicates that BTC could consolidate longer, but is not bearish in the short term.

The trader said:

BTC – H4 I see no reason to be bearish on bitcoin 2 points I add to my long. As long as we continue to show higher lows, there is no reason to worry.

Traders generally think that bitcoin could experience a slight decline due to the overheated derivatives market, but the macro structure remains optimistic.

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