The BTC/USD pair has been trading in the range of $56000-60000 for 5 days. The bulls tried unsuccessfully to push the Bitcoin price to $60000 over the weekend, and the bears returned the price below $57000 each time. At the time of publication, the BTC/USD pair is trading around 56500. And it looks like BTC/USD has formed a double bottom on the 4 hours chart. If the double bottom hits, we will see a trend reversal soon.
A double bottom will be confirmed if BTC/USD rises above 60224. In this case, a 7% price increase can be expected. However, for this, the BTC/USD pair needs to overcome several resistance levels. The closest resistance level is around 57000. Further, the pair will meet resistance in the area of 57700, which is provided by the downtrend line.
Immediate support is near the level of 56000. A breakdown of this level and a decline to the area of 55500 could trigger a new wave of sales. The BTC/USD pair could drop to the area of 55000.
According to Santiment, wallets holding between 100 and 10000 BTC triggered an escalation in volatility last week. If in October the whales controlled 49,5% of the total BTC supply, then last week this figure dropped to 48,9%.
The decline turned out to be insignificant, and almost immediately after that, large investors resumed buying Bitcoin. They purchased approximately 40000 coins, which resulted in an increase in their BTC reserves to 49,1% of the cryptocurrency supply.
Analysts do not exclude that we have not yet reached the bottom, and the pullback may be more extensive. Whales buy Bitcoins, but they can go back to selling at any time.
The CryptoQuant report states that 91% of all Bitcoins listed on marketplaces are owned by large investors. If this figure exceeds 85%, then the cryptocurrency dump usually begins.