Bitcoin whale cluster shows: $14,900 is the key price for Bitcoin's continued rise

Whale clusters, like the bubbles shown in the chart below, form when high net worth investors buy Bitcoin and don’t move them. This shows that whales are hoarding BTC at that price level and suggests that it will likely remain a support zone if a correction occurs.

Therefore, in the short term, it will be crucial for Bitcoin to remain above $14,914 for a prolonged period. This would mean consolidation below the multi-year resistance level of $16,000 and stabilization above the major support level.

Bitcoin whale clusters Source: Whalemap

What’s Keeping Bitcoin Price Above $14,914?

Bitcoin’s price action has been unusual over the past week, with considerable volatility across a wide range.

From November 6 to November 9, Bitcoin tested the $16,000 level twice, falling to $14,350 at one point. This short-term volatility is likely related to a series of macro events, including the "disputed" US election results.

Since the beginning of November, there have been some major risks in the market. Election risk was clearly positive for Bitcoin as investors sought safe-haven assets. Then, Pfizer's vaccine breakthrough became an unexpected variable, causing Bitcoin and gold to plummet.

Despite these uncertainties, Bitcoin has remained comfortably above $13,600, a level identified by analysts at Whalemap. They wrote: “A new level formed over the weekend! This should be a good guide as to where Bitcoin should hold if we start a correction. Prices should remain above ~$13,600 for the bull run to continue.”

In the short term, the $13,600 to $14,914 range remains the most important factor for Bitcoin to continue to rise. So far, Bitcoin's momentum has been relatively strong considering that miners have been selling Bitcoin.

As Cointelegraph previously reported, CryptoQuant CEO Ki Young Ju said in an interview that miners have been selling Bitcoin. Based on Bitcoin's resilience, new buyer demand may offset the selling pressure from miners.

Investors are at a crossroads

Bitcoin has seen huge volatility due to market uncertainty. Some on-chain indicators show that Bitcoin is entering an oversold zone and investors may be taking profits. Cryptocurrency analyst Philip Swift wrote:

“Relative unrealized profit and loss indicator: has entered the ‘greed’ zone during Bitcoin’s recent push higher. This sounds bad, but in reality, we can spend most of the bull cycle in this zone. We are still in the early stages and there is a lot of upside left.”

Other fundamental indicators suggest that Bitcoin is still in the early stages of a bull market. For example, accumulation activity is continuing to increase, and research shows that smart investors are driving most of the upward trend.

Both the unusual price action and the information from on-chain data points show an unclear direction for Bitcoin. However, as long as Bitcoin remains above $14,914, the outlook for Bitcoin remains cautiously optimistic, at least in the short term.