As Bitcoin continues to float above $27,000 for the first time ever, analysts are suggesting there’s unusual staying power behind the rally.
Joseph Young at Cointelegraph talks about ‘Bitcoin whale clusters’ that provide indicators of the rally being well-founded and not likely to pop like a bubble in coming days.
“Bitcoin (BTC) whale clusters show that the $23,409 level has become an area of focus for large traders,” Young writes. “This indicates that the ongoing bull run is buoyed by whales continuing to accumulate above $23,000. Whale clusters form when whales purchase Bitcoin and do not move their BTC holdings from the price of purchase. Clusters are useful in determining Bitcoin’s support levels, especially when the market moves rapidly.”
Amid this coverage, Young also looks at the number of unspent coins in the system and other signs that the current rally is corresponding to past increases. These include “solid support areas” for rally behaviors, and a “parabolic line” that could indicate future gains.
Meanwhile, options runners are getting on board: for example, Deribit is now offering options for Bitcoin to go to $120,000 or $140,000.
“A week ago last Thursday, Deribit made waves in the cryptocurrency industry by introducing call and put options at the $100,000 strike price expiring on Sept. 24, 2021,” wrote Kevin Reynolds at Coindesk Dec. 26. “The purchase of a $100,000 call is a bet that Bitcoin will rise above that level on or before Sept. 24, 2021, making the option ‘in-the-money.’”
Traders are also looking at where Bitcoin may eventually top off. One analysis from a user with the handle “Byzantine General” suggests a range of $30,000 to $36,000.
It might seem counterintuitive to take advice from someone calling themselves “Byzantine General,” given its meaning in network verification, but in a broader sense, there’s a lot of consensus that Bitcoin is on solid ground.