The Rise of Buy Walls: What They Mean for Bitcoin
Recent analysis by Edward Morra, a renowned Bitcoin trader, shows that major exchanges like Coinbase and Bitfinex are witnessing substantial buy orders above the $17,200 mark. This flood of buy walls is significant, especially in light of the flash crash Bitcoin experienced on November 18, when prices dipped to around $17,222. Clearly, whale investors are flexing their muscles, utilizing large buy orders to protect this critical support level.
How Strong is the $17K Support Level?
Both digital whale activity and exchange order books indicate that the $17,000 threshold is not just a number but a powerhouse of support. The data suggests that if Bitcoin maintains stability above this point, it has a clear path with little resistance found until the all-time high of $20,000. This means we might just see a breakout above the $18,500 level if the price holds steady. In fact, declining below $17,200 now seems highly unlikely unless a colossal sell order triggers a chain reaction of cascading liquidations.
The Whale Game: Tracking Orders and Clusters
Before Bitcoin’s intraday bounce from $17,340 to $18,000, whales on Bitfinex were strategically placing sell orders. Morra highlighted that Bitfinex is now becoming a different beast, showing a robust buy wall below the current range. As he noted, “In case it dips, Coinbase has set up significant bids beneath the current range.” In an elaborate dance of buyers and sellers, it seems Bitfinex is now leaning towards the bullish side.
Analysts from Whalemap have been tracking these whale movements, noting that clusters have formed at $17,783 and $17,651. A cluster, for the uninitiated, happens when large holders acquire Bitcoin at specific price points and hold onto those, reflecting confidence in their investment. These clusters suggest that the whales are making a calculated bet on the price stabilizing at these levels.
High Time Frame Setup: Hope on the Horizon
What’s more positive than a well-placed order? A fantastic high time frame setup! Throughout November, analysts have been keenly observing the higher time frame charts to paint a rosy picture for Bitcoin’s short to medium-term evolution. Kevin Kelly, co-founder of Delphi Digital, emphasized that Bitcoin is on track for a monumental first monthly candle closure above $14,000. He remarked, “If BTC closes out November anywhere near current levels, it will mark a new monthly closing high.” A celebration is in order—well, maybe after November closes!
Embracing Maturity in the Market
Bitcoin’s journey, like a rollercoaster with a particularly wild track, is not linear. But such is the nature of markets, especially one as vibrant as Bitcoin’s. Kelly asserted that Bitcoin is indeed maturing, stating, “It’s important to remember the road to the top is never linear; significant drawdowns are inevitable.” However, now more than ever, Bitcoin has gained acclamation from major investors and is steadily moving into high-powered circles of thought. With large buy walls emerging on key exchanges, the chances of any further dips seem slim, especially with BTC’s price firmly above $18,000.
