Having reached a 6-week high of $21085, the price of bitcoin (BTC) returned to the level of $20,470. Given that fear still rules the crypto market, and as the price approaches the $21,000 level, many investors begin to take profits, further actions of bitcoin whales can significantly affect the movement of the asset price.
Bitcoin whales face a fix
The behavior of Bitcoin whales is often the key to long-term price trend changes. For most of the past year, they have been actively accumulating coins, and then recorded a profit at the end of October – right before updating the historical maximum of the BTC price.
However, recently large investors have shown almost no activity in the market. This can be seen from the data on the number of whale transactions, which does not show significant growth.
In general, the whales are still skeptical about the BTC price movement, and the price action is still in a strong drawdown.
Trend is still downward
However, the BTC price remains in a downtrend. And although the short-term growth has intensified purchases by retail investors, the on-chain indicator SOPR (Spent Output Profit Ratio) suggests that even among long-term holders of bitcoin, the desire to fix profits at $21085 has increased.
Without activity on the part of bitcoin whales, fixing even such a small profit can become the norm.
A significant demand zone was created between the price levels of $19,000 and $20,700, where more than four million addresses purchased approximately 2.3 million BTC. In the short term, the key resistance for the BTC price will be the level of $20,850, and then $21,167. The $19540 mark still remains a key support level for the bitcoin price.
