Bitcoin bull cycle gaining steam: Whale cluster at $13K is now a support zone

According to on-chain data from the analysts at Whalemap, $13,000 has become a support level for the price of Bitcoin.

Whale clusters indicate that whales - or large BTC holders - are continuously accumulating.

Whale clusters form when a large number of BTC are transferred to a new address and the BTC is unspent.

A large whale cluster has emerged at the $13,000 level, which could turn into a key support level.

Why a $13,000 support would be ideal for a Bitcoin rally.

Bitcoin started to rally and gain momentum from Sep.

Due to the healthy rally of Bitcoin, whales have been accumulating BTC in key areas.

The whale cluster at $13,000 might suggest that high-net-worth investors do not expect a massive pullback occurring in the near term.

"We have a whale cluster at $13,000 now, with a lot of unspent bitcoins belonging to whale wallets at that level. Since, Bitcoin's price is above the $13,000 level - it should be acting as support. The origin of the whale cluster could be due to OTC deals: looking at the HODLer volume during the short time we spent at $13,000 shows that a lot of BTC was moved during that time."

Second, even at a multi-year resistance like $13,875, whales are not taking large profits.