Here are some brief thoughts about the current market conditions and what I’m seeing in the market.
Bitcoin is recovering after the controversial U.S. FINCEN rule proposed revealed by United States Secretary of the Treasury Steven Mnuchin.
The reason is quite simple: the rule isn’t as bad as many thought.
The controversial rule essentially requires crypto exchanges to keep track of non-custodial wallets (name and address of the owner) for withdrawals and deposits above $3,000.
Jake Chervinsky, a lawyer and general counsel at Compound Finance, says it could have been much worse.
“Let's look on the bright side for a minute. This doesn't require KYC for every transaction with a non-custodial wallet. It isn't an outright ban on self-custody. It doesn't prohibit the act of using a permissionless network. It really -- REALLY -- could have been much worse,” Chervinsky says.
Now let’s take a look at what exchange heatmaps show.
Source: Tensor Charts
Exchange heatmaps show the following levels:
Resistance at $23,600, $23,800, and $24,200.
There are large sell orders at the three resistance levels, particularly on Bitfinex.
Support at $22,500 and $22,800.
Bitcoin continues to reject $23,600, and it clearly is a big area of interest for sellers in the near term.
Now if Bitcoin goes above $23.6k and also breaks $23.8k, then it’s price discovery again and obviously bullish.
Now let’s take a look at what whale clusters show.
Whale clusters form when whales buy Bitcoin at a certain price level and do not move their holdings.
Clusters often identify support levels because whales are likely to bid the cluster areas.
Short-term 1-hour whale clusters show the following levels:
Support levels at $23,150, $22,620, $21,740.
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